Introduction to Fundamental Analysis
Introduction
In a market economy, price is determined by the interaction of supply
and demand. The study of supply and demand is also known as "fundamental
analysis." In this brief self-study course, you'll learn how to estimate a
market price for commodities using the law of supply and demand as
reflected in the "stocks-to-use ratio." The stocks-to-use ratio is a
closely watched figure in establishing asking prices for commodities. In
order to understand stocks-to-use, you must have at least a working
knowledge of the economic theory of supply and demand. Supply and demand
graphs are useful tools to illustrate these concepts.
Next chapter: A Primer on The Law of Demand
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