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Fundamental analysis provides a way to Analysts to find a good and prospective company using two approaches namely top down and bottom up.
If the factors to consider are economic (E), industry (I) and company (C) factors, beginning at company-specific factors and moving up to the macro factors that impact the performance of the company is called the bottom-up approach.
Scanning the macro economic scenario and then identifying industries to choose from and zeroing in on companies, is the top-down approach.
Thus knowing the procedures to undertake fundamental analysis will help Analysts to pick correct stocks which will provide good stocks to the traders and investors to make money in stock market by using a pragmatic approach
Bottom Up Approach
If the factors to consider are economic (E), industry (I) and company (C) factors, beginning at company-specific factors and moving up to the macro factors that impact the performance of the company is called the bottom-up approach.
Top Down Approach
Scanning the macro economic scenario and then identifying industries to choose from and zeroing in on companies, is the top-down approach.
Thus knowing the procedures to undertake fundamental analysis will help Analysts to pick correct stocks which will provide good stocks to the traders and investors to make money in stock market by using a pragmatic approach
