NISM Certifications · NISM-Series-XV: Research Analyst · Qualities of a Good Research Report
Which practice best supports the 'timeliness' quality of a research report after a company announces a major acquisition?
Promptly updating the report to reflect the acquisition and its impact on estimates supports timeliness. Investors rely on current information, so material events should be incorporated quickly rather than waiting for the annual report or simply re-dating the old analysis.
- AWaiting until the next annual report before commenting
- BUpdating the report promptly to reflect the new information and its impact on estimatesCorrect
- CPublishing the old report again with a new date only
- DWithdrawing all coverage of the company without notice
Explanation
Timeliness means reports reflect current material information. Prompt updating of estimates and views after a major event keeps the report relevant; delays, re-dating old text or silent withdrawal do not.
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