There are many people who invest their hard earned income in to various sectors available in the stock market. Some of the well-known ones among them are stock market, government bonds, gold, silver, platinum, diamonds, bank deposits, commercial or residential property etc. The returns from these sectors are never going to be the same. In fact, if you do not make good investment decisions, you have a good chance of losing a portion of your savings. In some rare cases, you may lose the entire amount of your investment. stock market analysis helps you to reduce the loss making potential of your investment in to this sector.
One of the key elements that are analyzed to gauge the potential of any stock is its earnings per share over a period of time. Dividends given during the past many quarters or years can also provide light on the financial strength and future growth potential of any firm.