Strictly speaking, security analysis may be carried on without reference to any definite program or standards of investment, such a specialization of functions would be quite unrealistic. Critical examination of balance sheets and income accounts, comparisons of related or similar issues, studies of the terms and protective covenants behind bonds and preferred stocks. These typical activities of the securities analyst are invariably carried on with some practical idea of purchase or sale in mind, and they must be viewed against a broader background of investment principles, or perhaps of speculative precepts. In this work we shall not strive for a precise demarcation between investment theory and analytical technique but at times shall combine the two elements in the close relationship that they possess in the world of finance. The subreddit is temporarily in restricted mode due to an influx of new users. If you'd like to post, please send a request to the moderators.
Security analysis is the analysis of tradeable financial instruments called securities. It deals with finding the proper value of individual securities i. These are usually classified into debt securities, equities , or some hybrid of the two. Tradeable credit derivatives are also securities.