05 September 2007
I am a student of B.K.SCHOOL OF BUSINESS MANAGEMENT and I am doing my project on equity research so I want to know about it in brief.So please tell me what is equity research? and how to do it? Please send some related links.
05 September 2007
The "company" form of organization changed the way the world did business. The company raised the capital required to do business by issuing financial instruments (or assets) called "equity shares" to the general public. Such a purchase of shares from the company itself is a "primary market" activity. Such a purchase did not tie the investor to the company forever because they could sell these shares in the "secondary market" (or in other words, the stock exchange) unlock their investments.
Purchase of equity shares in the market offered high returns to the investors. Apart from the dividend income that they received, the investors also made capital gains when the share prices shot up due to various reasons. Over and above these financial benefits, equity shares
also gave ownership and control of the company in the same proportion as the number of shares held.
These heavy returns do not come without associated risks. Good amount of subjectivity and ambiguity is involved in finding the true value of an equity share. This renders difficult, the decision regarding proper investment.
18 November 2007
Equity Research involves analysing data of the company and the companies in the same industry. Like Kotak Bank, but also analyse SBI, HDFC.
09 February 2008
EQUITY RESEARCH IS A VAST SUBJECT.
YOU NEED TO COLLECT DATA OF COMPANIES IN THE SAME INDUSTRY.
SUCH COMPANY DATA IS AVAILABLE for listed companies ON
www.sebi.gov.in, www.crisil.com, www.equityresearch.in
google search will also immensely help. type company name and thewebsite of company will give you the fin. and non fin. data.
another comparison is secondary market data(existing listed companies) and ipo or new or primary market data.
but first you need to decide on the object of such research.
do you wish to advise a prospective investor or a predator taking over or acquirer of a company? or to help a fund house to invest/ or is it simply to analyse industry data of all companies in the industry for a data bank or statistical pespective?
accordingly the depth and volume of data collection and parameters of comparison will be decided and analysis of fin. and non fin. data will also throw light on several facts and figures AND THEN ONLY ANY MEANINGFUL CONCLUSIONS CAN BE ARRIVED AT FOR THE CLIENT.