THE SELECTION OF SMALL AND MEDIUM CAPITALIZATION ANALYSIS METHODS APPLIED IN INVESTOR PORTFOLIO FORMATION

Abstract

The article represents different analysis methods of small and medium capitalization being applied in a process of investor portfolio formation. The author analyzes behavior and characteristics of small and medium capitalization, and demonstrate insufficient efficiency of technical indicators based on historical price data. In the article are also examined the foundations, peculiarities, and advantages of volume analysis applied in combination with auction market theory. Being based on the theory of market participants cooperation as well as on personal experience, the author supplements the described analysis tools by recommendations that improve results of securities selection.

Keywords

• analysis securities of small and medium capitalization
• investor portfolio
• volume spread analysis
• auction market theory