Analysis Beginner: Analyzing Investments

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1.
If prices rise above a consolidation line, future security prices will probably fall.
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False. If prices rise above a consolidation line, future security prices will probably rise.
2.
The main goal of security analysis is to _______.
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Calculate the real value of a security. The main goal of security analysis is to calculate the real value of a security.
3.
When investor expectations are high, the overall market will _______.
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Fall. When investor expectations are high, the overall market will fall.
4.
The total market value of a companys available stock shares is measured by ________.
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Capitalization. The total market value of a companys available shares is measured by capitalization.
5.
Which of the following does not measure stock value?
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Net profit margin. Net profit margin does not measure stock value. The other two do, in different ways.
6.
To a technical analyst, every aspect of a market is revealed through _______.
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Market movement. Technical analysts study the movement of the whole market.
7.
Fundamental analysts determine a security's value by looking at its market price.
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False. Fundamental analysts determine a security's value by looking at the financial health of the company issuing the security.