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Technical Analysis Is So Called Because It Relies on Sound

question 96

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Technical analysis is so called because it relies on sound scientific principles rather than intuition.


Definitions:

Dividend Payout Ratio

The fraction of earnings a company pays out to its shareholders as dividends, represented as a percentage of its net income.

Financial Statement

Formal records of the financial activities and position of a business, person, or other entity, typically including balance sheet, income statement, and cash flow statement.

External Financing

External financing is the process of obtaining funds from outside sources, such as banks, investors, or financial markets, to support a company's operations or expansion.

Sales Capacity

Refers to the maximum level of sales that can be achieved within a given period under normal operating conditions, considering the company's resources and market demand.

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