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Financial Analysis Attempts to Identify Certain Characteristics of Securities as Well

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Financial analysis attempts to identify certain characteristics of securities as well as


Definitions:

Business Cycle

The fluctuations in economic activity characterized by periods of economic expansion and contraction over time.

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services in an economy.

Unemployment and Inflation

Two key indicators in economics, where unemployment measures the percentage of the workforce that is jobless, and inflation indicates the rate at which the general level of prices for goods and services is rising.

Cost/Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives, used to determine options that provide the best approach to achieve benefits while preserving savings.

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