Skip to content

NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Research Analyst Profession

A research analyst's spouse holds shares of a company the analyst is about to publish a report on. Which action is most consistent with good practice for the profession?

The analyst should disclose the spouse's holding in the report and follow the firm's conflict-of-interest policy. Holdings of relatives are not exempt because they stand in another name, and selling after publication or inflating the target price would be improper conduct.

  1. ADisclose the holding in the report and follow the firm's policy on conflicts of interestCorrect
  2. BOmit disclosure because the shares are held in the spouse's name
  3. CSell the shares in the spouse's name just after publishing the report
  4. DRaise the target price to reflect the family's interest

Explanation

Financial interest of the analyst and relatives must be disclosed and managed through conflict policies. Holdings of the spouse are not exempt merely because of the name. Trading after publication or biasing the target price is improper.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Research Analyst Profession shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Research Analyst ProfessionFree diagnostic mock

More Introduction to Research Analyst Profession questions