Investment analysis is the process of evaluating the potential profitability and risks associated with an investment. It involves examining various factors such as market trends, economic indicators, and the financial health of the investment target, whether it be stocks, bonds, or real estate. By conducting thorough analysis, investors can make informed decisions that align with their financial goals and risk tolerance.
The goal of investment analysis is to maximize returns while minimizing risks. Tools such as fundamental analysis and technical analysis are commonly used to assess the value of an investment. Understanding these concepts helps investors navigate the complexities of the financial markets effectively.