Stock valuation for investors

Over the financial markets, savers who people or institutions transfertheir funds to the people or instutions who need funds over the money or capitalmarkets. In money markets, fund flow is in short term, but in capital marketsfund flow is in long term. At the same time, trading funds in capital marketsimplements with the securities. This securities include bond, stock, participatingshare, asset backed security, revenue partnership certificate and etc?In this respect, investors who invest in stocks would like to endure a sumof risk and would like to be the price of stock higher than when it bought.Accordingly, investors analyse the standart value of stocks with someapproaches. These aproaches are efficient market hypostesis, technical analysisand fundamental analysis. In efficient market hypostesis, the standart value ofstocks do not be analyised by the invest in stocks one by one, but aimed theminimum of risk creating a portfolio from stocks and would like to be higherreturn. Accoırding to the efficient market hypostesis, price of stocks in the pastdo not be used for the predicting of the future prices of stocks. In technicalanalysis, price of stocks are determined by the market and prices go by a trendand investors decide when they invest and do not invest in stocks by followingtrends. Finally, in fundamental analysis economic developments effect on stockprices and and investors analysis the macro economi, sector and company anddecide buying or selling stocks.In this study, an investor who thinks investing to the stock of an examplecompany in Istanbul Stock Exchange use the fundamental analysis and analysisthe financial statements of that company between 2004 and 2007 by the meansof financial ratios and in the analysis of financial ratio of 2007 is worse than theother years. Therefore, in this study shown that one by one stock investment foran investor.Key Words: Financial Markets, Stock, Stock Valuation, Efficient MarketHypothesis, Technical Analysis, Fundamental Analysis