Equity Research Analyst

70+ Equity Research Analyst Interview Questions and Answers

Updated 9 Jul 2025
2w ago

Q. Do you know of any unlisted shares?

Ans.

Yes, unlisted shares refer to shares of a company that are not traded on a stock exchange.

  • Unlisted shares are not available for trading on a public stock exchange.

  • Investors can buy and sell unlisted shares through private transactions.

  • The value of unlisted shares is determined based on the company's financial performance and potential growth.

  • Examples of companies with unlisted shares include startups, family-owned businesses, and privately held companies.

1w ago

Q. How do you convert physical shares to demat?

Ans.

To convert physical shares to demat, one must open a demat account with a depository participant and submit the physical share certificates for dematerialization.

  • Open a demat account with a depository participant (DP)

  • Fill out a dematerialization request form provided by the DP

  • Submit the physical share certificates along with the form

  • The DP will verify the documents and initiate the dematerialization process

  • Once the shares are dematerialized, they will reflect in the demat acc...read more

2w ago

Q. What do you know about 3A Financial?

Ans.

3A Financial is a financial services company specializing in investment research and analysis.

  • 3A Financial provides equity research services to institutional investors and individual clients.

  • The company offers in-depth analysis of various industries and companies to help clients make informed investment decisions.

  • 3A Financial may also provide recommendations on specific stocks or investment opportunities.

  • The firm's analysts may publish research reports on a regular basis to k...read more

2w ago

Q. What is the difference between value stocks and growth stocks?

Ans.

Value stocks are undervalued by the market, while growth stocks have high potential for future earnings growth.

  • Value stocks are typically characterized by low price-to-earnings (P/E) ratios and high dividend yields.

  • Growth stocks are companies that are expected to grow at a rate significantly above the average for the market.

  • Value stocks are often considered safer investments, while growth stocks are more volatile.

  • Examples of value stocks include utility companies and establis...read more

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1w ago

Q. What is the impact of an interest rate hike by the FED on share prices?

Ans.

Interest rate hikes by the FED typically lead to lower share prices due to increased borrowing costs and reduced consumer spending.

  • Interest rate hikes increase borrowing costs for companies, leading to lower profits and reduced investment in growth opportunities.

  • Higher interest rates also make bonds more attractive compared to stocks, leading investors to shift their investments away from equities.

  • Consumer spending may decrease as borrowing costs rise, impacting companies' re...read more

1w ago

Q. What journal entries are required for the acquisition of a business under IND AS?

Ans.

Journal entry for acquisition of business under IND AS

  • Identify the fair value of assets and liabilities acquired

  • Allocate the purchase price to the identifiable assets and liabilities

  • Recognize goodwill as the excess of purchase price over the fair value of net assets acquired

  • Record the acquisition costs separately as expenses

  • Disclose the details of the acquisition in the financial statements

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6d ago

Q. What is the difference between the P/E ratio and dividend yield?

Ans.

P/E ratio measures stock price relative to earnings, while dividend is a portion of company profits distributed to shareholders.

  • P/E ratio compares stock price to earnings per share, indicating how much investors are willing to pay for each dollar of earnings.

  • Dividend is a portion of company profits distributed to shareholders as a form of return on their investment.

  • P/E ratio helps investors assess the valuation of a stock, while dividends provide income to shareholders.

  • Compan...read more

1w ago

Q. What can we understand from the P/E Ratio?

Ans.

PE ratio helps investors understand how much they are paying for a company's earnings.

  • PE ratio is calculated by dividing the current stock price by the earnings per share (EPS).

  • A high PE ratio may indicate that a stock is overvalued, while a low PE ratio may suggest it is undervalued.

  • Investors use PE ratio to compare the valuation of different companies within the same industry.

  • PE ratio can also be used to assess the growth potential of a company.

  • For example, a company with a...read more

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1w ago

Q. How do you fundamentally pick a stock?

Ans.

Fundamentally picking stocks involves analyzing financial health, industry position, and growth potential.

  • Evaluate financial statements: Look at income statements, balance sheets, and cash flow statements to assess profitability and liquidity.

  • Analyze valuation metrics: Use ratios like P/E, P/B, and EV/EBITDA to determine if a stock is undervalued or overvalued.

  • Assess competitive advantage: Identify companies with strong moats, such as brand loyalty or unique technology, that ...read more

Asked in FactSet

4d ago

Q. What are the key differences between public and private companies?

Ans.

Public companies are listed on stock exchanges and have shares available for public trading, while private companies are not listed and have limited shareholders.

  • Public companies have shares that are traded on stock exchanges, allowing for public ownership and trading.

  • Private companies are not listed on stock exchanges and have limited shareholders, often including founders, employees, and private investors.

  • Public companies are required to disclose financial information to th...read more

Asked in Genpact

1w ago

Q. What is the difference between depreciation and amortization?

Ans.

Depreciation is for tangible assets like buildings and machinery, while amortization is for intangible assets like patents and copyrights.

  • Depreciation is the allocation of the cost of tangible assets over their useful life.

  • Amortization is the allocation of the cost of intangible assets over their useful life.

  • Depreciation is typically used for assets like buildings, machinery, and vehicles.

  • Amortization is typically used for assets like patents, copyrights, and trademarks.

1w ago

Q. What is the difference between the Price-to-Earnings (P/E) ratio and the Price-to-Book (P/B) ratio?

Ans.

PE ratio compares stock price to earnings per share, while PB ratio compares stock price to book value per share.

  • PE ratio is calculated as stock price divided by earnings per share, indicating how much investors are willing to pay for each dollar of earnings.

  • PB ratio is calculated as stock price divided by book value per share, indicating how much investors are willing to pay for each dollar of assets.

  • PE ratio is more commonly used to evaluate growth stocks, while PB ratio is...read more

2d ago

Q. Tell me something about AS14.

Ans.

AS14 is a standard for accounting of employee stock options.

  • AS14 is issued by the Institute of Chartered Accountants of India (ICAI).

  • It provides guidelines for accounting and disclosure of employee stock options.

  • AS14 requires companies to recognize the fair value of employee stock options as an expense in their financial statements.

  • It also requires companies to disclose the impact of employee stock options on their financial statements.

  • AS14 is important for investors as it he...read more

2d ago

Q. What are unlisted shares?

Ans.

Unlisted shares are shares of a company that are not traded on a stock exchange.

  • Unlisted shares are not available for trading on a public stock exchange.

  • Investors can buy and sell unlisted shares through private transactions.

  • The value of unlisted shares is determined based on the company's performance and potential.

  • Companies may choose to remain unlisted for various reasons, such as avoiding regulatory requirements or maintaining privacy.

  • Examples of unlisted shares include sh...read more

2w ago

Q. How do you stay up-to-date with the market regularly?

Ans.

Regularly reading market requires keeping up with news, analyzing trends, and monitoring financial reports.

  • Stay up-to-date with financial news and reports

  • Analyze market trends and patterns

  • Monitor stock prices and company performance

  • Use technical analysis tools to identify potential opportunities

  • Stay informed about economic indicators and global events that may impact the market

  • Follow industry experts and analysts for insights and recommendations

Asked in FactSet

1w ago

Q. Types of ratios and their formulas

Ans.

Types of ratios include profitability, liquidity, solvency, and efficiency ratios with formulas to analyze financial performance.

  • Profitability ratios measure a company's ability to generate profit, such as Return on Equity (ROE) = Net Income / Shareholder's Equity.

  • Liquidity ratios assess a company's ability to meet short-term obligations, like Current Ratio = Current Assets / Current Liabilities.

  • Solvency ratios evaluate a company's long-term financial health, for example Debt...read more

Q. What is your understanding of Beta?

Ans.

Beta is a measure of a stock's volatility in relation to the market.

  • Beta measures the sensitivity of a stock's returns to changes in the market.

  • A beta of 1 indicates that the stock's price will move with the market.

  • A beta greater than 1 indicates the stock is more volatile than the market.

  • A beta less than 1 indicates the stock is less volatile than the market.

  • Beta is used in the Capital Asset Pricing Model (CAPM) to calculate expected returns.

Q. What is your favorite stock in the NSE and why?

Ans.

My favorite stock on NSE is HDFC Bank due to its strong fundamentals, consistent growth, and robust asset quality.

  • Strong financial performance: HDFC Bank has consistently reported high net interest margins and return on equity.

  • Market leader: It is one of the largest private sector banks in India, with a significant market share in retail banking.

  • Robust asset quality: The bank maintains a low NPA ratio, indicating effective risk management and credit quality.

  • Digital transforma...read more

Q. Why do you want to join BSE?

Ans.

I want to join BSE to gain exposure to the financial markets and contribute to the growth of the organization.

  • Opportunity to work in a prestigious financial institution

  • Desire to analyze market trends and make informed investment decisions

  • Passion for contributing to the growth of the organization

  • Interest in gaining exposure to the financial markets

2w ago

Q. Do you invest in markets?

Ans.

Yes, I invest in markets to gain practical experience and insights for my equity research analysis.

  • I invest in a diversified portfolio to manage risk and maximize returns

  • I closely monitor market trends, company performance, and economic indicators

  • I use fundamental and technical analysis to make informed investment decisions

  • Examples: investing in stocks, bonds, ETFs, and mutual funds

Asked in V-Mart

1w ago

Q. What is EBITDA?

Ans.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance.

  • EBITDA is calculated by adding back interest, taxes, depreciation, and amortization to net income.

  • It is used to analyze and compare profitability between companies and industries.

  • EBITDA provides a clearer picture of a company's financial health by excluding non-operating expenses.

  • Investors often use EBITDA to assess a company's ability to gen...read more

5d ago

Q. Explain inner join with an example.

Ans.

Inner join combines rows from two tables based on a related column

  • Inner join returns only the rows that have matching values in both tables

  • It is used to retrieve data that exists in both tables

  • Example: SELECT Orders.OrderID, Customers.CustomerName FROM Orders INNER JOIN Customers ON Orders.CustomerID = Customers.CustomerID;

Asked in CapitalVia

3d ago

Q. Types of equity , debentures etc

Ans.

Equity includes common stock and preferred stock, while debentures are unsecured debt instruments.

  • Equity includes common stock and preferred stock

  • Common stock represents ownership in a company and typically comes with voting rights

  • Preferred stock usually pays a fixed dividend and has priority over common stock in terms of dividends and liquidation

  • Debentures are unsecured debt instruments issued by corporations and governments

  • Debentures do not have any collateral backing and r...read more

2w ago

Q. Explain the different types of Options.

Ans.

Options are financial derivatives that give the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price before or on a specified date.

  • Call Option: Gives the holder the right to buy the underlying asset at a specified price before the expiration date.

  • Put Option: Gives the holder the right to sell the underlying asset at a specified price before the expiration date.

  • American Option: Can be exercised at any time before the expiration date...read more

Asked in MagicBricks

1w ago

Q. What are your skills?

Ans.

I have strong analytical skills, attention to detail, and ability to work under pressure.

  • Strong analytical skills

  • Attention to detail

  • Ability to work under pressure

  • Proficient in financial modeling and analysis

  • Excellent communication and presentation skills

  • Experience in conducting industry research and analysis

4d ago

Q. What are tangible assets?

Ans.

Tangible assets are physical assets that have a quantifiable value and can be seen or touched.

  • Tangible assets include property, plant, equipment, inventory, and vehicles.

  • These assets are used in the operations of a business and are recorded on the balance sheet.

  • Tangible assets can be depreciated over time to reflect their decreasing value.

  • Examples of tangible assets include buildings, machinery, and land.

  • Tangible assets are different from intangible assets like patents or tra...read more

Asked in Crisil

1w ago

Q. What are ROE and ROCE?

Ans.

ROE stands for Return on Equity and ROCE stands for Return on Capital Employed. They are financial ratios used to measure a company's profitability and efficiency.

  • ROE is calculated by dividing net income by shareholders' equity. It measures how effectively a company is using shareholders' equity to generate profit.

  • ROCE is calculated by dividing EBIT (earnings before interest and taxes) by total capital employed. It measures how efficiently a company is using its capital to ge...read more

Asked in FactSet

1w ago

Q. Explain financial statements.

Ans.

Financial statements are reports that provide information about a company's financial performance and position.

  • Financial statements include the income statement, balance sheet, and cash flow statement.

  • The income statement shows a company's revenues, expenses, and profits over a specific period of time.

  • The balance sheet provides a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time.

  • The cash flow statement shows how cash is generate...read more

Asked in ETH

6d ago

Q. What is fundamental analysis?

Ans.

Fundamental analysis evaluates a company's financial health and intrinsic value through financial statements and economic factors.

  • Focuses on financial statements: income statement, balance sheet, cash flow statement.

  • Analyzes key ratios: P/E ratio, debt-to-equity ratio, return on equity.

  • Considers macroeconomic factors: interest rates, inflation, GDP growth.

  • Evaluates industry trends and competitive positioning.

  • Example: Assessing a tech company's growth potential by analyzing R&...read more

Q. GDP and GNP difference

Ans.

GDP measures the value of goods and services produced within a country, while GNP measures the value produced by a country's residents, regardless of location.

  • GDP only includes production within a country's borders, while GNP includes production by a country's citizens regardless of location.

  • GDP is used to measure a country's economic output, while GNP is used to measure a country's economic strength.

  • For example, if a Japanese company produces goods in the US, the value of th...read more

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