This part moves from market knowledge into security analysis. It explains how analysts evaluate industries, companies, financial statements, and ratio trends when deciding whether a security looks attractive and why that view might still be wrong.
Chapter 13 introduces fundamental and technical analysis at the market and industry level. Chapter 14 narrows the focus to company analysis, including financial statement interpretation, ratio analysis, and preferred share quality.
The exam often tests the difference between methods rather than the methods in isolation. Be ready to distinguish top-down versus bottom-up thinking, trend evidence versus intrinsic value, and accounting strength versus true investment quality.
In this section
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Company Analysis
Company analysis, financial statement interpretation, ratio analysis, and preferred share quality.
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Assessing Preferred Share Quality
Credit quality, dividend features, structural terms, and suitability considerations for preferred shares.
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Company Analysis Process
The practical process for reviewing a business, its disclosure, its statements, and its main investment risks.
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Reading Financial Statements
What the income statement, statement of financial position, and cash flow statement reveal about an issuer.
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Using Financial Ratios
Liquidity, leverage, profitability, and valuation ratios used to organize company analysis.
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Why Company Analysis Matters
How issuer-level analysis fits within fundamental analysis and why company-specific evidence matters.
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Fundamental and Technical Analysis
Equity-analysis methods, macro and industry context, and the tools used in technical analysis.
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Fundamental and Technical Summary
Main distinctions between fundamental analysis, macro context, industry structure, and technical tools.
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Industry Analysis
Industry classification, competitive dynamics, and the factors that affect sector profitability.
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Macroeconomic Analysis
How growth, inflation, rates, and policy shape investor expectations and security prices.
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Methods of Equity Analysis
How fundamental analysis, technical analysis, and market theories approach pricing decisions.
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Technical Analysis Tools
Chart patterns, indicators, and the assumptions behind technical analysis.
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Why Equity Analysis Matters
How analysts use market, economic, and company information to support investment decisions.