What are the vital qualities of a Research Analyst?
The Research analysts require quantitative and qualitative ability. An analyst requires an utmost comfort in dealing with numbers to be able to analyse various financialfactors, identify trends and see the inter-relationship between different aspects.
Moreover, he needs to be methodical, have an inquisitive mind and be judicious to know where to find relevant information.
Ability to comprehend business models and competitive dynamics in a business is another vital quality an analyst must have.
Utilising these skills, a research analystsconcludes whether he would be in support of or against investing in a particular industry or company.
Qualities that are essential to be a good research analyst are:
Good with numbers
Good Excel/spreadsheet and other data analytical tools
Lucidity in financial concepts
Capability to read and comprehend financial statements and reports
Knack to ask relevant questions
Written and Verbal communication skills
What are Securities and Securities market?
Securities are financial instruments issued to raise funds. The chief function of the securities market is to enable the flow of capital from those that have it to those that need it.
Securities market helps in transfer of resources from those with idle or surplus resources to others who have a useful need for them.
In other words, securities market provides channels for transfer of savings into investments.
A security means the terms of exchange of money linking two parties.
Securities were proceeded by companies, financial institutions or the government.
They are purchased by investors who are willing to invest. Security ownership permits investors to convert their savings into financial assets which provide a return.
Security issuance permits borrowers to raise money at a cost. Through Securities Market, a broader universe of savers with excess to invest is available to the issuers of securities and a universe of wider options is available to savers to invest their money in.
Consequently, the objectives of the issuers and the investors are complementary, and the securities market provides a platform to mutually satisfy their goals.
Securities are useful because owners can transfer their interest to others without the issuers being affected by providing liquidity; securities permit issuers to raise capital for the long term without locking in investors.
Financial Market consists of:
The term “securities” explained in the Section 2(h) of SCRA- Act, 1956.
The term ‘Securities’ include:
1. stocks, bonds, Shares, scrips, debentures, debenture stock or other marketable securities of a similar nature in or of any consolidate company or other body corporate.
3. Units or any other instrument proceeded by any cumulative investment scheme to the investors in such scheme’s units.
4. Security receipt as explained in clause (zg) of Section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
5. Units or any other instrument provided to the investors beneath any mutual fund scheme
6. Any authorization or instrument, furnished to an investor by an issuer is a special purpose definite entity which possesses any debt or receivable plus mortgagedebt, allocated to such definite and acknowledging beneficial interest of such investor in such debt or receivable plus mortgage debt as the case may be.
7. Government securities
8. Such other securities might be announced by the Central Government to be securities.
9. Rights or interest in securities The investors in the Indian securities market have an extensive choice of financial products to choose from depending upon their risk enthusiasm and return expectations. The financial products can be characterized as equity, debt and derivative products.