NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Research Analyst Profession
Which of the following activities is a research analyst generally prohibited from doing?
A research analyst is prohibited from trading in a security ahead of the publication of his report, using its unpublished contents. This is front-running. Maintaining records, obtaining certification and disclosing the registration number are all expected requirements.
- AMaintaining records of research reports and recommendations
- BTrading in a security in the period before the publication of his report on it, ahead of the clients, using the report's contentsCorrect
- CObtaining a qualifying NISM certification
- DDisclosing his registration number in the research report
Explanation
Trading ahead of publication using knowledge of an unpublished report is front-running and is prohibited. Keeping records, getting certified and disclosing registration details are required or good practice.
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.
More Introduction to Research Analyst Profession questions
- Which of the following is an example of a conflict of interest that a research analyst should avoid or disclose before publishing a report?
- An analyst values a company at an intrinsic value of ₹480 per share using a discounted cash flow model, while the market price is ₹400. Late…
- An analyst values a stock using a P/E approach. The analyst's firm policy says that a recommendation must have a reasonable basis. Which of …
- Which of the following is a core function that distinguishes sell-side research from buy-side research?
- Which of the following is an example of a conflict of interest that a research analyst must disclose in a research report?
- Which of the following is the main difference between sell-side and buy-side research analysts?