Top Market Research Analyst Interview Questions & Answers:

1. What is the difference between an associate and an analyst in investment banking?

In Investment Banking, the analyst role is the lowest level in the organizational chart. The analyst usually reports to an associate, and therefore the associate in Investment Banking ranks higher than the analyst.

2. How much does money motivate you?

Motivate a little in the sense that it's one form of measurement for success. But otherwise not a whole lot. Partly why I would not consider banking at this point in my life as I personally do place a value on my free time and would forgo a potentially bigger payoff via the banking/PE route.

3. What keeps you motivated?

Even if I win the lottery tomorrow, I would still live my life exactly the same. I'm pretty content at the moment so just keeping the course is enough to motivate me for now.

4. Have you considered leaving your job to start your own company?

No, I'm not emotionally attached to the things I do, so for me starting my own business limits my flexibility if I'm financially invested.

5. Can you please explain the difference between an associate and an analyst in equity research?

In Equity Research, the associate is the lowest role in the organizational hierarchy and the associate reports to the analyst.

6. Which industries have you worked with in the capacity of a research analyst?

Describe the industries or companies you analyzed in the past. Also mention the companies or clients you worked for who are fairly predictable, but be specific.

7. Tell us about investment analyst reports of equity research?

Investment analyst reports contain advice on whether to buy or sell the securities of specific companies or industries. They are produced by research analysts employed by firms that may have an interest in selling securities; however, they can provide a useful model to students in understanding how investment professionals analyze an industry and what data points they find of most interest.

8. Describe the equity research structure?

Equity Research organizational chart is very flat. There are only 3 levels: associate, analyst and the Head of Equity Research. Each analyst is responsible for covering companies in a particular sector. We illustrate only some of these sectors. In reality, there are many more sectors and sub-sectors as an investment bank can have anywhere from 10 analysts (boutique investment bank) to as many as 60 analysts (big bulge brackets with international operations).
A single analyst typically has one or two associates depending on how many companies he covers.

9. Describe investment banking structure in equity research?

The Investment Banking function is usually organized by industry groups and product groups. Industry groups are essentially sectors, such as industrial, Consumer Products, Energy, Financials, and others. Product groups include functions like ECM, DCM and M&A and serve companies in all sectors. The analyst role is at the lowest level.

10. Which skills are needed for an equity research analyst?

★ It is necessary to possess higher analytical abilities.
★ You need to have strong understanding of accounts and financial fundamentals as most of the time, what you are doing are crunching numbers!
★ Apart from this, knowledge about global and local business is an added advantage.
★ You should know about capital markets and how they function.
★ The equity analyst also needs to be a good communicator.
★ Since all the financial analysis needs to be presented in the form of reports and/or case studies, strong writing skills is a must.
★ As an equity researcher, possessing correct judgment goes with the job.