fundamentals

Definition

Any factor that could be considered important to the understanding of a particular business. Fundamentals are usually considered outside the context of the market as a whole. Some examples of fundamentals include a company's growth, revenues, earnings, management, and capital structure. The use of fundamentals as an investment strategy is called fundamental analysis.

Use fundamentals in a sentence

You should try to stick to the fundamentals you know best any time you are taking on a new venture.

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The high share price wasn't supported by fundamentals so once the supply of greater fools ran out, the stock price plummeted.

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While studying the fundamentals of French horn performance, Mary was forced to forego all other activities and dedicate her time to practicing horn.

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