Explain the Importance of Research Methods with an Example

question 73

Essay

Explain the importance of research methods with an example.

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Definitions:

Intrinsic Value

The real or true value of a company, stock, currency or product determined through fundamental analysis without reference to its market value.

Technical Analysis

The evaluation of securities by means of studying past market data, primarily price and volume.

Retain Earnings

Profits that a company has decided to keep or retain rather than paying out to shareholders in dividends or reinvesting back into the company.

Issue Stock

To issue stock is a process whereby a company distributes new shares to investors, thus raising capital in exchange for ownership stakes in the corporation.