Security analysis

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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 Preferred stock Registered share Stock Stock certificate Stock exchange
Other markets
Derivatives (Credit derivative Futures exchange Hybrid security) Foreign exchange (Currency Exchange rate) Commodity Money Real estate Reinsurance
Over-the-counter (off-exchange)
Forwards Options Spot market Swaps
Trading
Participants Regulation Clearing
Related areas
Banks and banking Finance corporate personal public
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Security analysis is the analysis of tradeable financial instruments called securities. It deals with finding the proper value of individual securities (i.e., stocks and bonds). These are usually classified into debt securities, equities, or some hybrid of the two. Tradeable credit derivatives are also securities. Commodities or futures contracts are not securities. They are distinguished from securities by the fact that their performance is not dependent on the management or activities of an outside or third party. Options on these contracts are however considered securities, since performance is now dependent on the activities of a third party. The definition of what is and what is not a security comes directly from the language of a 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.

See also[]

• Financial analyst
• Stock valuation
• Securities research

References[]