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qualitative analysis definition - finance
A type of analysis that looks at a variety of factors to determine whether an investment should be made. Credit and securities analysts use qualitative analysis to examine general industry trends, analyze the effectiveness of management, determine whether new products or services are being adopted by the market, and determine how the behavior of the overall economy is likely to affect a companyÂ’s financial performance. Qualitative analysis contrasts with quantitative analysis, which uses mathematical analysis of numbers to make investment recommendations.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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