Researcher Trainee Interview Preparation Guide

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The purpose of equity research is to study companies, analyze financials and look at quantitative and qualitative aspects, helping investors of varying degrees to make an informed decision.
As the name suggests, 'research' plays the most important role here.
Over the years, research methods have changed but the sole intention of research remains the same.
The number of investors is booming and so is the need for exploring the nature of investments.
Investors wish to take calculated and informed decisions, and this is where the role of equity research begins.

Multiple steps are involved in the equity research process, which are given below:
1. Economic Analysis
2. Industry Analysis
3. Company Analysis
4. Financial Statement Analysis
5. Financial and Valuation Modeling
6. Report Writing
7. Presentation or Recommendation

Desired information availability and consumption spurned a whole new industry, popularly known as Equity Research.
Equity research is the study of equities or stocks for the purpose of investments. Equity research is what an equity research analyst does. In simpler terms, equity research is the act of gathering information:
1) Information that helps investors to decide where to put in their money
2) Information that traders require to understand whether to enter or exit a market position
3) Information that financiers (bankers and firms) need to evaluate companies

To be painstakingly detail-oriented is crucial. Strong math is also of utmost importance. Analytical skills have to be top-notch if a person is to be able to interpret the market and company performance. And communication skills are important because a research analyst communicates with clients and target industries and prepares reports regularly.

Economic analysis is a systematic practice undertaken to determine the usability of available resources, comparison between two or more resources, accounting opportunity costs and measuring the scope or viability of an investment.

Industry analysis is a tool used for assessing current markets and understanding its complexities. Political, economic and market factors are reviewed to understand its influence over the development of the industry.

An analyst focuses on a specific company or industrial segment, researches it's economic performance, and documents it in the form of a report. The report is presented to the company management who then decides how to improve the services.

Accounts of a company are evaluated to determine the financial soundness (or otherwise) of the company. Profit and loss statements and managerial practices are overseen to prepare an accurate financial statement.

Company analysis is a series of activities undertaken to analyse the operations of a business, focusing on the cause and effect of decisions and how they are likely to benefit (or not) future investors.

A degree in MBA, CA or CFA is essential to begin a career in equity research. A person begins as an equity research associate and then moves on to become an analyst in the long-term.
Interning with good financial and investment companies while still completing the course gives a strong platform towards career building.

Presentation or recommendation is based on the report, recommendations are made for the benefit of the company and its shareholders.

The Investment Banking function is usually organized by industry groups and product groups. Industry groups are essentially sectors, such as industrial, Consumer Products, Energy, Financials, and others. Product groups include functions like ECM, DCM and M&A and serve companies in all sectors. The analyst role is at the lowest level.

No, I'm not emotionally attached to the things I do, so for me starting my own business limits my flexibility if I'm financially invested.

Even if I win the lottery tomorrow, I would still live my life exactly the same. I'm pretty content at the moment so just keeping the course is enough to motivate me for now.

Motivate a little in the sense that it's one form of measurement for success. But otherwise not a whole lot. Partly why I would not consider banking at this point in my life as I personally do place a value on my free time and would forgo a potentially bigger payoff via the banking/PE route.

In Investment Banking, the analyst role is the lowest level in the organizational chart. The analyst usually reports to an associate, and therefore the associate in Investment Banking ranks higher than the analyst.

The flow chart gives a clear graphical representation of an implemented
process. This makes the system simple to understand for all persons involved in the project.

The use case model requires a use case diagram. It describes the business
environment. Its primary goal is to show the series of events and actions within any given process that will be performed by an actor.

► Use case diagram
► Activity diagram
► Collaboration diagram.

A communication diagram or interaction diagram, is an illustration of the relationships and interactions among software objects in the Unified Modeling Language (UML). The concept is more than a decade old although it has been refined as modeling paradigms have evolved.