EXPERT ECONOMIC ANALYSIS.
Systematic and well-designed way of determining the maximum use of a scarce resource is what can be called economic analysis, this will have to involve comparing two or more alternative in order to achieve a certain objective obviously under some given constrains and assumptions. Since in business it’s mostly about knowing how much one is gaining or losing economic analysis accounts for the opportunity cost incurred in acquiring a given scare resource and tries to measure it in monetary terms.
So as not to lose much after acquiring a certain resource there are some factors that one has to consider in order to make sure that the decision that he will take will resonate to the cash he will invest. Almost everywhere in the current world, politics determine much on how well the economic environment is, therefore before investing it is good to ensure that the country you need to acquire that scarce resource is politically stable for a smooth leaning of economy.
Understanding the industry cycle is something that should not be ignored by any investor out there, it is good to determine how this will affect the investor. Having the facts about company cycles helps any investor out there make an informed decision if he is making a decision of whether to venture in a certain industry at its early stages or he has to wait and venture in the last stages of maturity and decline. Understanding company’s ratio is an important factor since once one gets to know these ratios and cash flow statement it will help them determine the very right decision to make regarding choosing a certain investment decision. Auditors report, directors report and statements of financial position of an entity can be used by any investor to understand how the company has been performing over the year, having gone through all this financial statement makes the investor make an informed decision regarding investment.
Information is very important, therefore before any interested investor enters in to the stock market he should make sure that he is conversant with how business is done here, and off late all this can be leant online and in just a matter of few days you are good. It is very good to do a deep study on how well your broker of choice is well informed about stock market this is because there are many investors who without knowing have ended up suffering at the hands of such brokers yet they claim to know about the stocks but in the real since they don’t. Ratios help to explain the relationship of assets and liabilities it is therefore very important to make sure that those ratios are analyzed before investing.