Skip to content

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

Which of the following is an example of a conflict of interest that a research analyst should avoid or disclose before publishing a report?

Holding a significant personal position in the recommended stock without disclosing it is a conflict of interest. It may bias the recommendation to the analyst's own benefit, so it must be avoided or disclosed. Using public data, quoting results or revising targets are ordinary research practices.

  1. AUsing publicly available annual reports for the analysis
  2. BHolding a significant personal position in the stock being recommended without disclosing itCorrect
  3. CQuoting the company's published quarterly results in the report
  4. DUpdating the target price after a change in earnings estimates

Explanation

An undisclosed personal holding in a recommended stock may bias the view and can benefit the analyst at readers' expense, so it must be avoided or disclosed. The other options are normal research activities.

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