MASS COLLEGE OF ARTS AND SCIENCE

KUMBAKONAM
DEPARTMENT OF MANAGEMENT STUDIES
CLASS: II MBA
SUBJECT: SECURITY ANALYSIS & PORTFOLIO MANAGEMENT
SUBJECT CODE: P16MBA3EF3
FACULTY NAME: K VIMALANATHAN
Unit - II

REVISION CLASS
Concept of
Fundamental Analysis
It is the examination of various factors such as
earnings of the company, growth rate and risk
exposure that affects the value of shares of a
company.
Fundamental analysis consists of:
 Economic analysis
 Industry analysis
 Company analysis
Economic Analysis
It is the analysis of various macro economic factors that have a significant bearing on the stock market.
The various macro economic factors are:

GDP
Savings & Investment
Inflation rate
Interest rates
Tax structure
BOP (Balance Of Payments)
Monsoon & Agriculture
Budget
Infrastructure facilities
Demographic factors
Economic forecasting
Economic Indicators