Securities Analysis

Analysis and valuation of securities (shares, bonds, etc.) precedes the decision on a potential investment in securities. During the securities analysis, the economic situation of the issuer is examined. The main source of information about the issuer is the financial analysis. All the information acquired must be subsequently properly interpreted and assessed. The security is valued based on the analysis and this ascertained “fair value” is compared with the market rate. The entire securities analysis can be summarized as follows: • Analysis (processing information that may affect the investment positively or negatively) • Forecast (estimate of the future yields trend based on the analysis of historical data and information submitted on the current situation and possible development) • Rating (the forecast result is confronted with the external environment, i.e. the situation in the capital markets, the business cycle, etc.)