Question 1
An analyst uses only historical financial data and ignores industry trends. What limitation does this create?
Question 2
Why is relying only on top management for insights potentially misleading?
Question 3
If an analyst avoids asking tough questions to company management to maintain relationships, what is the major risk?
Question 4
A buy-side analyst shares internal research with the public. What issue arises?
Question 5
An analyst ignores small discrepancies in financial statements assuming they are insignificant. What quality is lacking?
Question 6
Which of the following situations represents a conflict of interest?
Question 7
An analyst recommends a stock based on strong management guidance without verifying external data. Which principle is being violated?
Question 8
Which of the following best describes a situation where an analyst is using qualitative analysis incorrectly?
Question 10
An analyst prepares a very detailed report but uses complex jargon without explanation. What is the key issue?