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

Which of the following activities is most consistent with the code of conduct expected of a research analyst regarding the integrity of a research report?

A research analyst should base recommendations on reasonable, documented analysis and clearly separate facts from opinions. Cherry-picking data, tipping off favoured clients before publication, or guaranteeing returns all violate the integrity, fairness and objectivity expected under the code of conduct.

  1. ABasing recommendations on reasonable, documented analysis and clearly distinguishing facts from opinionsCorrect
  2. BSelectively citing data that supports a pre-decided rating
  3. CSharing an unpublished rating change with a favoured client before publication
  4. DGuaranteeing returns on recommended securities

Explanation

A sound report rests on reasonable analysis, keeps records of the basis and separates facts from opinion. Cherry-picking data, front-running a rating change by tipping a client, and guaranteeing returns all breach the objectivity and fairness expected.

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