Updated October 5, 2023
Equity Research Interview Questions
Q1. What Key factors/Ratios should be considered while carrying out Fundamental Analysis?
Answer: Usually, the following factors are considered:
- Price Earnings Ratio (PE),
- Earnings Per Share (EPS),
- Dividend Payout Ratio (DPS),
- Return On Equity (ROE)
- Profit Margin Ratio
Q2. In fundamental analysis, what factors should be considered while analyzing a company?
Answer: The various factors of a company that need to be studied include,
- The Management or the administration of the company.
- The Annual Report of the company.
- Financial Statement Analysis of the Company.
- Financial Ratios calculation from the same.
Q3. Can you shed some light on Technical Analysis trends?
Answer: In our day-to-day life, what do we mean by trend? It simply means the way of moving a particular situation or thing. In Technical Analysis, a trend means the same: the direction in which a security or market is moving.
- Bullish Trend – Bullish Trend means moving stock continuously in an upward direction. A Bullish Trend means an overall rise in broad market indices.
- Bearish Trend – Bearish Trend means moving stock continuously in a downward direction. In simple language, a Bearish Trend means a fall in market indices. Investors consider a bearish trend as a pessimistic scenario and go short on that particular stock.
- Range Bound/ Flat Trend – Range Bound/ Flat Trend means the stock is neither moving in an upward direction nor a downward direction. It means it is playing in a similar range.
Q4. Can you please explain the Support and Resistance concept in technical analysis?
Answer: Support and resistance are the levels that show stock movement.
Support is a price level a stock tried to cross below but ultimately stayed above. The level has the lowest closing price value of five consecutive trading sessions.
Resistance describes a price level the stock tried to cross above but could not. The level has achieved a high price value of five consecutive trading sessions.
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