Security analysis

Doing Analysis before Investing in any Security

For the book by Benjamin Graham, see Security Analysis (book).

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Financial markets

* Public market
* Exchange · Securities

Bond market

* Bond valuation
* Corporate bond
* Fixed income
* Government bond
* High-yield debt
* Municipal bond

Securitization

Stock market

* Common stock
* Growth stock
* Preferred stock
* Registered share
* Stock
* Stockbroker
* Stock certificate
* Stock exchange
* Watered stock

Other markets

Derivatives

* (Credit derivative
* Futures exchange
* Hybrid security)

Foreign exchange

* (Currency
* Exchange rate)

* Commodity
* ETF
* Money
* Mutual fund
* Option
* Real estate
* Reinsurance
* Structured product
* Swap (finance)

Over-the-counter (off-exchange)

* Forwards
* Options

* Spot market
* Swaps

Trading

* Participants
* Regulation
* Clearing

Related areas

* Alternative investment
* Angel investor
* Asset (economics)
* Asset pricing
* Banks and banking
* Bull
* Climate finance
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* Eco-investing
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* ESG
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* Greenwashing
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* Sustainable development goals
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In finance, Security analysis is the evaluation and assessment of stocks or securities to determine their investment potential. It involves analyzing various factors, such as financial statements, industry trends, market conditions, and company-specific information, to make informed investment decisions. There are two primary approaches to security analysis, fundamental Analysis and technical Analysis.[1]

Security analysis deals with finding the proper value of individual securities (i.e., stocks, bonds and derivatives). These are usually classified into debt securities, equities, or some hybrid of the two. They can also include derivatives such as tradeable credit derivatives, commodities, futures contracts and options even if some of these are not technically securities.

The definition of what is and what is not a security varies by analyst but a common definition is the one used by the United States Supreme Court decision in the case of SEC v. W. J. Howey Co. Security analysis for the purpose to state the effective value of an enterprise is typically based on the examination of fundamental business factors such as financial statements, going concern, business strategy and forecasts.[2]

## See also[edit]

* Financial analyst
* Stock valuation
* Securities research
* Security Analysis (book)
* Quantitative analysis (finance)
* Value investing

## References[edit]

1. ^ "Security Analysis and Portfolio Management". Management Study Guide. Retrieved June 20, 2023.
2. ^ SEC v. W. J. Howey Co., 328 U.S. 293 (1946).

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