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NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report

Which of the following is a feature of a well-structured research report on a company?

A well-structured report states the key risks to its recommendation, such as regulatory, competitive or execution risks. Presenting risks gives a balanced, fair view and lets readers assess how the thesis could fail, unlike one-sided or opaque reports that hide valuation methods or use unexplained jargon.

  1. AIt presents only the positive aspects of the company to encourage investment
  2. BIt states the key risks to the recommendation, such as regulatory, competitive or execution risksCorrect
  3. CIt avoids disclosing the valuation method to protect the analyst's proprietary view
  4. DIt uses technical jargon extensively without explanation

Explanation

A balanced report covers risks that could make the recommendation wrong, which helps readers weigh the decision. One-sided, opaque or jargon-heavy reports reduce clarity and fairness, which are core qualities of good research.

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