Equity research can be simply termed as research of Equities.
Equity means common shares or stock of Businesses.
Businesses can be
- Partnerships or
For Equity research or valuation we should be concerned about the companies part only
Research implies thorough understanding of the company under study. We study their strength, weakness and finances to predict what lies in future for the company.
Thus Equity Research is aimed at unraveling value of companies especially those listed on Equity markets. Good research could help investor to create wealth by investing in such researched equities.
So this was the basic idea about what actually is Equity research. In next post we shall learn about its uses in detail and what factors does it depend on!