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
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
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.
Recommended Articles
Here are some articles that will help you get more details about the equity Research interview questions, so just go through the link.
