The three major categories of factor that influences the price of a share are sentiments, liquidity and the fundamentals of a company. Fundamental Analysis can be defined as the analysis of the fundamentals of the company to determine the intrinsic value of the company's stock. It analyses a number of factors such as business model of the company its competitors the industry financial statements etc to determine the intrinsic value of the stock of the company. Equity research uses this intrinsic value to buy or sell shares. If the intrinsic value is lower than the market price the stock is bought and vice-versa. Read the full article: Why Fundamental Analysis is Important?