Info 1: security analysis definition
Info 2: how security analysis works
Info 3: security analysis vs technical analysis
Info 4: example of security analysis
Opening information:
Security and analysis breaks into two words Security and analysis. Security means protection, analysis means research. Security analysis means researching the protection item.
So now let’s have a look at what is a security analysis, how security analysis works in the public market, and what is the difference between security analysis and technical analysis, finally one brief example about security analysis.
Info 1: security analysis definition
Mr. Mathiv is a stock Investor who always focuses on long-term investment by buying the desired business. This year he hasn’t found any kind of business since the year began.
He had researched the 30 companies already, and also he continued to research more amount of Ownership public securities. Despite researching and knowing the hundreds of public securities who mostly interested in the common stocks of the business.
Before Mathiv purchased any amount of share in the public market, he always refers the common shares’ voting rights and the Industry dividends payout.
Then over look another any public business to understand and analyze the common stocks in various ways and their voting rights that are provided by each institution.
Moreover what kind of common shares class type does he own and what is the voting rights power he got when compared to any other class types of common shares?
Next, how the owned companies paid it’s each type of common shareholder based on the class types and shares types.
Here the research and analyzed activities of the common stock is what is named security analysis, but this is defined variously in the public market, so let’s dive to know more.
Info 2: how security analysis works
Securities analysis doesn’t represent any of the specific fixed object or things, instead, they are the activity of researching the public securities that are offered to the nation and world people.
Therefore researching and understanding any kind of public securities in the market would be considered a security analysis.
Suppose the analysis doesn’t take place in the government-authorized shares and stocks, which are not categorized as security analysis in the public market.
If any of the people who use the stock analysis such as using the common shares, cumulative preferred shares, noncumulative preferred shares extra… I overlook its dividends and rights and structure works which are elaborate as a security analysis.
Next the same person who is involved in the activities of research the debt instruments such as different kinds of bonds by the governments and Corporations with consideration of their face value, works, and Interest payment, where they are normalized with security analysis.
Then some of them are highly interested in the path of investing in a
Commodities such as gold, silver, oil, crops extra…. By understanding its growth and exchange of future contracts their research activities also came in the category of security analysis.
Moreover, forex pairs that trade in the public market among traders or Investors every day are researched for their pips exchange rate, and trade value which are also trapped in the category of security analysis.
So it doesn’t matter what kind of research a certain person conducts on any kind or type of security which is normally illustrated as securities analysis.
Most people are confused the security analysis and technical analysis, so let’s jump into the key differences anyway.
Info 3: security analysis vs technical analysis
The difference between security analysis and technical analysis is, that security analysis is the one which refers to the research, overlook, and inspection of public securities,
Not on any specific business.
On the other side, technical analysis refers to the one that uses tools or equipment electronically to research the price trend movement. But not a public business or Securities.
To make you more clear about the security analysis, let’s look into one brief example below.
Info 4: example for security analysis
You and your brother are stock investors who are involved in different activities in the research and analysis of the public market, but not in the same section.
Your brother invested by analyzing the security function and its payment, types, then knowing its business connections and dividends.
You analyze the stock chart over the past 5 years using the moving average of technical tools in profits on the price movement.
Here your brother’s activities of research show the security analysis and your work shows the technical analysis of trade security.