Why are you interested in equity research vs. the investment banking route?
Equity Research Analyst Interview Questions
Equity Research Analyst Interview Questions
Equity research analysts offer information and analysis to clients to help them make decisions about investments. In an equity research analyst interview, employers might ask specialized questions about stocks to ensure you can predict trends and analyze data to offer reliable recommendations.
Top Equity Research Analyst Interview Questions & How To Answer
Question 1
Question #1: What is the difference between enterprise value and equity value?
How to answer
How to answer: This question tests your understanding of a basic investment concept. Explain that enterprise value captures a stock's current value to shareholders, while equity value is the market value and net debt. An ideal answer might also explain how these two values are found and how they could help you and your clients make decisions.
Question 2
Question #2: Describe an equity research report.
How to answer
How to answer: Equity research reports are a commonly used tool. Aim to show the interviewer that you are skilled in creating these reports. Explain that this is a report delivered to a client where you recommend that they buy, hold, or sell a stock and justify each recommendation. Detail all of the information included in the report, including the industry overview, company financials and ratio, valuations and projections, management overview, and finally, the recommendation.
Question 3
Question #3: Pitch me a stock.
How to answer
How to answer: With your answer, showcase your sales skills. Speak to the interviewer the way you would speak to a client. Choose a company, and reference the information you would include on an equity research report. Prove that you stay updated on the latest news in stocks.
2,141 equity research analyst interview questions shared by candidates
What kind of markets/stocks are you interested in lately? How strong are you in accounting? Do you have an accounting background? Why Morgan Stanley? Why Equity Research?
Tell me about yourself, why this division etc
For summer analyst role, they asked re: what are the three financial statements and walk us through how they're related...not hard in retrospect, but for someone in liberal arts college with no accounting class, it would need some prep work
Why are you here?
Lots of technical questions about valuation of companies
If you had $100,000, would you invest it short term into the stock market or keep it in cash? (Asked right after the fiscal cliff legislation was passed)
How would you determine if this (particular company) would be a good investment?
Event affecting financial markets
-Market Sizing question -`Spontaneous Stock pitch
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