Skip to content

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

Meera, a sell-side analyst at a brokerage, publishes a report with a 'Buy' rating on a mid-cap firm. Her firm also earns investment banking fees from that firm. Which action best aligns with the ethical expectations of the profession?

Meera should disclose the investment banking relationship in the report and keep her research view independent of the banking team. Disclosure lets readers assess possible bias, while seeking banking approval or concealing the link compromises objectivity and integrity.

  1. AOmit any mention of the banking relationship since it concerns a different department
  2. BDisclose the relationship in the report and maintain independence of the research view from the banking teamCorrect
  3. CAsk the investment banking team to approve the rating before publication
  4. DDelay the report until the banking mandate is completed, then publish without disclosure

Explanation

Ethical practice requires disclosing the relationship so readers can weigh potential bias, and keeping research independent of banking influence. Seeking banking approval or hiding the link undermines independence.

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