Getting Started in Fundamental Analysis

If you've picked up this book, you probably recognize the value of fundamental analysis, but aren't sure you can master it. With Getting Started in Fundamental Analysis as your guide, you'll quickly become familiar with the key concepts and learn how to put them into action in the real world.

You'll gain important insights that can help you manage risk and make more informed investment decisions and learn from relevant illustrations, examples, and definitions. Written in a non-technical format that's easy to follow, Getting Started in Fundamental Analysis provides valuable coverage of:

• the audited statement.
• finding financial information online.
• the process of confirmation.
• balance sheet and income statement ratios.
• the P/E ratio and how to use it.
• how the combination of fundamental analysis with technical methods creates a powerful strategy.

More than an introduction to fundamental analysis, this book will help you use analytical tools in identifying risk levels, making valid and reliable comparisons, and picking stocks for your portfolio so you develop a successful and profitable investment program.

Introduction: How Fundamental Are the Fundamentals? 1

Chapter 1 Financial Statements and What They Reveal 5

Chapter 2 Basic Stock Market Theories 33

Chapter 3 The Audited Statement—Flawed but Useful 57

Chapter 4 Finding Financial Information Online: Step-by-Step Explanations 77

Chapter 5 How Accurate Are the Numbers? 95

Chapter 6 Confirmation: The Trend of the Trends 121

Chapter 7 Balance Sheet Ratios: Making the Analysis 137

Chapter 8 Income Statement Ratios: Tracking the Profits 155

Chapter 9 The Popular P/E Ratio and How to Use It 173

Chapter 10 Using Fundamental—and Technical—Analysis Together 187

Chapter 11 Indicators That Go beyond the Statements 201

Glossary 215

Notes 227

Index 229

Michael C. Thomsett is a financial writer who has written more than sixty books on investing, real estate, business, and management topics. He is the author of several Wiley books, including Getting Started in Rental Income, J.K. Lasser's Real Estate Investing, and six editions of the bestselling Getting Started in Options. Prior to his writing career, Thomsett was a professional accountant and systems consultant. An accessible introduction to FUNDAMENTAL ANALYSIS

GETTING STARTED IN FUNDAMENTAL ANALYSIS

If you've picked up this book, you probably recognize the value of fundamental analysis, but aren't sure that you can master it. With Getting Started in Fundamental Analysis as your guide, you'll quickly become familiar with the key concepts of this discipline and learn how to put them into action in the real world.

Getting Started in Fundamental Analysis contains important insights that can help you manage risk and make more informed investment decisions. Each chapter is filled with a variety of relevant illustrations, examples, and definitions that bring important concepts to life. Written in a non-technical format that's easy to follow, Getting Started in Fundamental Analysis provides valuable coverage of:

• The audited statement
• Finding financial information online
• The process of confirmation
• Balance sheet and income statement ratios
• The P/E ratio and how to use it
• How the combination of fundamental analysis with technical methods creates a powerful strategy

Straightforward and accessible, Getting Started in Fundamental Analysis is not just an introduction to a range of analytical tools collectively called fundamental analysis. It's designed to help you put those tools to work in identifying risk levels, making valid and reliable comparisons, and picking stocks for your portfolio. It is this activity—deciding which stocks to buy, how long to hold them, and when to sell—that lies at the center of a successful and profitable investment program.