n NISM Certifications
XV NISM Series XV
Medium

What should a good management discuss with a research analyst? A responsible management team focuses on discussing the opportunities and challenges facing its business rather than trying to predict stock price movements or influence analyst sentiment. This ensures the analyst receives useful information about the business fundamentals and can make independent assessments.

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Opportunities and challenges in its business

    Correct answer

  2. B

    How its stock will perform in the future

  3. C

    Future financials to influence the analyst’s sentiments

  4. D

    All of the above

Why this is the answer

Good management avoids giving guidance on stock prices or influencing analysts. Instead, it shares information about operational opportunities, challenges, risks, and strategy to allow the analyst to make informed judgments.

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