Shiftkiya.com

Joe Roosevans – Why Equity Research Best for Investment?

Categories: Finance Tips
Tags:

Equity Researcher Securities research is a service provided by the financial services industry to their respective clients. Equity research experts are usually known as a research analyst or Security analyst. They do their own research and analyze the investment instruments from the investments point of view. The research analysis process is divided into two kinds of investment instruments or securities, first one is equity research in which analyst do research on stocks or equities and insurer of the same and the second one is the research is been done for the fixed income securities like bond or debentures.

Why Equity Research Best for Investment

Equity Researches very important to estimate the actual value of the shares or stock of a company, it also signifies the possibilities and uncertainty during the growth of the company in a particular period. Research is used to estimate the present value of shares of a company or it can be also applied to project the future value of the particular stock of a company. Analysts do research while considering all the risks and uncertainties involved throughout the normal course of business of a company.

Equity Research is generally provided by the Investment Bankers, Big broking house and independent equity research firms like credit rating agencies, they offer this service especially to their clients, however, some of them publish publicly to free of cost. Analysts in these research firms gather all as far as possible information of a relevant company, they review periodic financial disclosures, read industry news, use trading history, industry information databases, attend analyst meet, interview managers and management of  issuer, and after that perform their own primary research to estimate the actual share price the company.

Equity Researches the process of doing analysis and projections along with producing a research report in which typically a recommendation is given by the analyst to buy hold, or sell the shares or stocks of a particular company. However, they have different evaluation criteria and diverse kind of ratings like overweight, underweight or neutral but the main object is to recommend their clients that whether an investor should invest, hold or reduce their positions in the equity shares of that particular company.

Doing research is very important before introducing any product in the market, in fact, most of the companies do research before putting a huge amount of money in any projects or ventures. The same theory applies when an investor wants to make an investment in securities, especially in shares, bonds or marketable securities. When a research is been done while investing money in equities it is called “Equity Research”.

Lastly, it is been well advised, that every investor should utilize the research reports or analyst recommendation before investing his funds in the shares of any company. These research reports are very helpful because it justifies all the best possible investment grounds, risk & uncertainties, involve during the normal course of business of a company. These factors illustrate the actual capacity and potential of a company to grow in near future.

Author Bio: FRA Financial Group Founder Joe RoosEvans is an industry veteran who has built one of the nations’ most successful Independent Marketing Organizations – Financial Resources of America and its affiliated companies, including FRA Financial Group. Visit us now