Analysis Beginner: Analyzing Investments

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1.
Which of the following factors is/are examined in security analysis?
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All of the above. Cash flow, earnings, and dividends are all evaluated in security analysis.
2.
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.
3.
A _______ chart is used to track a stock's price momentum.
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Point. A point chart is used to track a stock's price momentum.
4.
Which of the following are used in technical analysis?
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All of the above. Technical analysis uses charts, graphs, and indicators, among other tools.
5.
Fundamental analysts use a corporation's financial information to determine its stock's intrinsic value.
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True. Fundamental analysts are concerned with the state of the company.
6.
Cash flow measures the difference between total cash received and used.
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True. Cash flow measures the difference between total cash received and used.
7.
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.