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NISM XV Chapter 1: Introduction to Research Analyst Profession
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NISM XV Chapter 1: Introduction to Research Analyst Profession

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Questions and Answers

What is the primary role of a Research Analyst?

  • To provide investment advice to clients based on research
  • To make investment decisions on behalf of clients
  • To manage investment portfolios for clients
  • To collect data and information to help clients make informed investment decisions (correct)
  • What type of data does a Research Analyst collect?

  • Neither micro nor macroeconomic data
  • Only macroeconomic data
  • Only microeconomic data
  • Both micro and macroeconomic data (correct)
  • What is an example of macroeconomic data?

  • Whole economy (GDP) (correct)
  • Industry analysis
  • Company management information
  • Individual customer behavior
  • What is a source of global economic data?

    <p>International Monetary Fund (IMF)</p> Signup and view all the answers

    What is a key aspect of the analysis and decision-making process?

    <p>Both qualitative and quantitative factors</p> Signup and view all the answers

    What is the purpose of a Research Analyst's interaction with a company?

    <p>To analyze the company's performance in terms of profit, revenue, and cash</p> Signup and view all the answers

    What type of Research Analyst earns income through brokerage?

    <p>Sell Side Analyst</p> Signup and view all the answers

    Who can be a client of an Independent Research Analyst?

    <p>Anyone, including Investors and Institutions</p> Signup and view all the answers

    What type of Research Analyst publishes a research report for their own investment decisions?

    <p>Buy Side Analyst</p> Signup and view all the answers

    What is a unique feature of Independent Research Analysts?

    <p>They sell their research on a subscription basis</p> Signup and view all the answers

    Study Notes

    Primary Role of a Research Analyst

    • Research Analysts evaluate investment opportunities through data analysis and market insights.
    • Their analysis informs decision-making for individuals and organizations regarding investments.

    Data Collected by Research Analysts

    • Analysts collect quantitative data, such as financial figures, market trends, and economic indicators.
    • Qualitative data may include corporate strategies, industry developments, and competitor assessments.

    Example of Macroeconomic Data

    • Gross Domestic Product (GDP) is a key example of macroeconomic data, reflecting a country’s economic performance.

    Source of Global Economic Data

    • International organizations like the World Bank and International Monetary Fund (IMF) provide reliable global economic data.

    Key Aspect of Analysis and Decision-Making Process

    • Accurate interpretation of data trends is crucial for making sound investment decisions and predicting future market behavior.

    Purpose of Interaction with a Company

    • Research Analysts engage with companies to gather insights that enhance their understanding of a firm's operations and future prospects.

    Type of Research Analyst Earning Income through Brokerage

    • Sell-Side Research Analysts work for brokerage firms and generate income through commissions and sales of their research.

    Client of an Independent Research Analyst

    • Independent Research Analysts can serve a variety of clients, including institutional investors, hedge funds, and individual investors seeking unbiased information.

    Type of Research Analyst Publishing Research Reports

    • Buy-Side Research Analysts publish reports to guide their investment decisions, often used internally within investment firms.

    Unique Feature of Independent Research Analysts

    • They provide objective insights free from conflicts of interest, as they are not tied to any brokerage or investment firm.

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    Description

    Learn about the primary role of a Research Analyst, their interaction with clients, and the qualities required for the profession. This chapter introduces the Research Analyst profession, including their duties and responsibilities.

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