Also found in: Dictionary, Thesaurus, Medical, Encyclopedia, Wikipedia.
The facts that affect a company's underlying value. Examples of fundamental information include debt, cash flow, supply of and demand for the company's products, and so forth. For instance, if a company does not have a sufficient supply of products, it will fail. Likewise, demand for the product must remain at a certain level in order for it to be successful. Strong fundamental information is considered essential for long-term success and stability. See also: Value investing, Fundamental analysis.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The basic economic, financial, and operating factors that influence the success of a business and the price of its securities. Fundamentals of a security include the price-earnings ratio, dividend payout, and earnings-per-share growth.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.