Recruitment/Research Analyst

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“Recruitment/Research Analyst related Frequently Asked Questions by expert members with experience in Recruitment/Research Analyst. These questions and answers will help you strengthen your technical skills, prepare for the new job test and quickly revise the concepts”



26 Recruitment/Research Analyst Questions And Answers

2⟩ Explain equity research?

Desired information availability and consumption spurned a whole new industry, popularly known as Equity Research.

Equity research is the study of equities or stocks for the purpose of investments. Equity research is what an equity research analyst does. In simpler terms, equity research is the act of gathering information:

1) Information that helps investors to decide where to put in their money

2) Information that traders require to understand whether to enter or exit a market position

3) Information that financiers (bankers and firms) need to evaluate companies

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3⟩ What is equity research process?

Multiple steps are involved in the equity research process, which are given below:

1. Economic Analysis

2. Industry Analysis

3. Company Analysis

4. Financial Statement Analysis

5. Financial and Valuation Modeling

6. Report Writing

7. Presentation or Recommendation

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5⟩ What skills are needed for an equity research analyst?

★ It is necessary to possess higher analytical abilities.

★ You need to have strong understanding of accounts and financial fundamentals as most of the time, what you are doing are crunching numbers!

★ Apart from this, knowledge about global and local business is an added advantage.

★ You should know about capital markets and how they function.

★ The equity analyst also needs to be a good communicator.

★ Since all the financial analysis needs to be presented in the form of reports and/or case studies, strong writing skills is a must.

★ As an equity researcher, possessing correct judgment goes with the job.

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7⟩ Explain investment banking structure in equity research?

The Investment Banking function is usually organized by industry groups and product groups. Industry groups are essentially sectors, such as industrial, Consumer Products, Energy, Financials, and others. Product groups include functions like ECM, DCM and M&A and serve companies in all sectors. The analyst role is at the lowest level.

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8⟩ Explain the equity research qualification?

A degree in MBA, CA or CFA is essential to begin a career in equity research. A person begins as an equity research associate and then moves on to become an analyst in the long-term.

Interning with good financial and investment companies while still completing the course gives a strong platform towards career building.

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9⟩ Explain the equity research structure?

Equity Research organizational chart is very flat. There are only 3 levels: associate, analyst and the Head of Equity Research. Each analyst is responsible for covering companies in a particular sector. We illustrate only some of these sectors. In reality, there are many more sectors and sub-sectors as an investment bank can have anywhere from 10 analysts (boutique investment bank) to as many as 60 analysts (big bulge brackets with international operations).

A single analyst typically has one or two associates depending on how many companies he covers.

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11⟩ Which keeps you motivated?

Even if I win the lottery tomorrow, I would still live my life exactly the same. I'm pretty content at the moment so just keeping the course is enough to motivate me for now.

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13⟩ Explain characteristics of a successful research analyst?

Research analysts are highly-motivated proactive professionals who are out to make a difference. They are fast-paced, adaptable, dynamic and demonstrate initiative. They are strong team players, have a passion for technology and think creatively.

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14⟩ What is financial statement analysis in research?

Accounts of a company are evaluated to determine the financial soundness (or otherwise) of the company. Profit and loss statements and managerial practices are overseen to prepare an accurate financial statement.

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16⟩ Does money motivate you?

Motivate a little in the sense that it's one form of measurement for success. But otherwise not a whole lot. Partly why I would not consider banking at this point in my life as I personally do place a value on my free time and would forgo a potentially bigger payoff via the banking/PE route.

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18⟩ Explain typical research process?

An analyst focuses on a specific company or industrial segment, researches it's economic performance, and documents it in the form of a report. The report is presented to the company management who then decides how to improve the services

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19⟩ Explain investment analyst reports of equity research?

Investment analyst reports contain advice on whether to buy or sell the securities of specific companies or industries. They are produced by research analysts employed by firms that may have an interest in selling securities; however, they can provide a useful model to students in understanding how investment professionals analyze an industry and what data points they find of most interest.

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20⟩ Explain company analysis in equity research?

Company analysis is a series of activities undertaken to analyse the operations of a business, focusing on the cause and effect of decisions and how they are likely to benefit (or not) future investors.

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