Question

What is the benefit of analyzing the market and alternative industries before individual securities?

Requirements: 250 words

Answer 1

Solution :-

Here in the Given Question A analysis of market or industries or individual Securities refers to the Fundamental Analysis . means the analysis of the financial statements or we say health or wealth of the business.

Now The Benefit of analyzing the market and alternative industries before individual securities is that with the help of it we first know whether it is good time to invest in the market or not . We first see or analysis the market or various economic conditions. With the help of it we can divide in which type of security we need to invest as low risky or high risky.

We need to do technical analysis and also quantitive analysis. Market analysis before investing in individual security is also important because security is very much also dependent on the market move. Now when we analysis the market now we need to decide whether the industry in which we invest is good or not as compared to other industries .

As per the economic situation we decide.Suppose if we want to invest in any banking share then while analysis we can also check auto mobile industry if we see that at this time auto mobile sector has more chance to grow then accordingly we change our decision Accordingly

So After market analysis we also need to analysis alternative industries Now after all this alaysis then come to the individual security in which you want to invest and then do Proper technical or fundamental analysis . If we full satisy then we need to invest .

Then clearly i say that the  benefit of analyzing the market and alternative industries before individual securities is that we have a chance to find better alternatives and also with the help of it we know that whether it is time to take high risk or not.

thankyou.