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fundamentals

Definition

Characteristics of a firm (reflected in its financial statements) that indicate its innate, basic strengths such as (1) competitive advantage, (2) earnings growth, (3) sales revenue growth, (4) market share, (6) financial reserves, and (6) quality of management. According to the proponents of fundamental analysis, these are the true measures of a firm's earnings potential and of the future value of its securities.

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