The digital learning hub of ICAI offers a Certificate course on fundamental analysis and technical analysis to educate about the stock market. This course syllabus examines the fundamental and technical analysis, and the students need to write two papers. Both the papers go for three hours. The student’s assessment is with objective questions. Apart from wide career paths such as tax consultants, internal auditors, and forensic auditors, the stock market also offers an impressive career to chartered accountants. There are two types of equity research analysts. One work with sell-side and the other work with the buy-side. The seller perspective requires qualitative analysis. The buyer perspective requires performance analysis. Let us throw light on the Certificate course on valuation and the job roles with equity research.
What are the six sections of equity research?
The equity research report consists of six sections. Industry research, historical financial results, management overview and commentary, forecasting, recommendations, and valuation are the six sections where the equity research analyst provides flash reports or detailed reports. The investor, investment bankers and the media move the analysts for the accurate analyst report on market fluctuations. Some equity research reports are misleading in the industry. Research analysts would like to research companies that pursue fundamental data and are exposed to a wide range of business investment options.
Importance of equity research:
The purpose of doing equity research is to buy, sell or hold the stock as per the financial and technical analysis. Banks place research analysts to provide timely recommendations about the stock market. Usually, analysts gain experience in any one industry where they pursue research with specialized knowledge. The major sectors in equity research are energy, healthcare, mining, telecommunications, technology, internet, consumer staples, and consumer discretionary. Equity research courses initiate healthy competition in the stock markets.
Difference between fundamental analysis and technical analysis:
The fundamental analysis calculates various factors like Annual revenue, tangible assets, ratios and total profit to calculate the intrinsic value. Then the analyst compares the market value and intrinsic value to draw recommendations. If the stock is undervalued, then it yields high returns with less investment. If the stock is overvalued, then it hints to the investor that there is an expectation of a fall in the price. So, here the buyer sells the stock at the right time. Investor, who gets insights about the fundamental analysis, will either buy or hold the stock for a longer period as planned. If the intrinsic value represents the wrong factor, then the calculation goes wrong totally.
Technical analysis takes into account the price movement, historical prices, volume of trade and returns. After the saturation point, the price of the stock will fall. So, if the price is surging up, then it will fall after a course of time. If the price is surging down, then it will rise after a course of time. The price has its upper limit and lower limit that help for preparing the analyst report with projections. Fundamental analysis is suitable for long term investment, and technical analysis is suitable for short term investment.
The technical analysis increases the trade activities, and fundamental analysis enhances the investment activities. In the fundamental analysis, the business processes dated with the past and present financial data gauge the growth. In the technical analysis, the calculation is with the past data and market trends. Chartered accountants know the financial statements and business processes with their financial education. They need to apply their knowledge and do the fundamental analysis. Technical analysis is new to chartered accountants. The research process help chartered accountants to understand the stock market better.
Job opportunities for equity research analysts:
To become an investment consultant, the professional has to clear the NISM certification course or ICAI certification course. The student can work as a fund manager, portfolio manager, research analyst, marketing professional, and you tuber are the diversified field in which equity research analyst can show his skills.
Certificate courses on cooperatives and NPO sectors, derivatives, arbitration, indirect taxes, international taxation, international financial reporting standards, business finance, forensic accounting and fraud detection, valuation, accounting standards, derivatives, forex and treasury management are the different types of ICAI post-qualification courses for chartered accountancy students. The benefits of understanding the stock market moulds the professional when doing the independent practice and holding the managerial position in the Companies. The course is delivered online, and the detailed syllabus is available on the ICAI website. Learning online relieves stress and also helps the students to understand the finance subject better.