Top-down security analysis
A) starts with the fundamental analysis of a firm.
B) includes economic, industry, and fundamental analysis.
C) concentrates on the competency of the senior management of a firm.
D) centers on the past performance of a firm.

Question

Quizplus · Accepted Answer

Top-down security analysis involves analyzing the broader economy first, then industries within that economy, and finally, the fundamentals of individual firms within those industries. This approach does not start with the analysis of a firm's fundamentals or focus primarily on the past performance or management competency of the firm.

Top-Down Security Analysis