NISM Series XXV-A key terms

An individual who prepares or publishes research reports or makes public recommendations on securities, and who must hold the certification required by the research analyst regulations.

A written or electronic communication that provides analysis of securities or issuers and contains a recommendation, excluding purely factual or general market commentary.

Advice, explicit or implied, to buy, sell, or hold a security, or a view on its value, that a client could reasonably rely upon when investing.

Any participation in a seminar, forum, radio, television, or online discussion where a research analyst expresses views on securities covered by that analyst.

Any employee, director, or agent of a research entity who is involved in preparing research or who interacts with clients on research-related matters, and who is subject to conduct rules.

The person appointed by a research entity to oversee compliance with research analyst regulations, review conflicts of interest, and maintain records of analyst activities.

A situation where an analyst's personal, financial, or firm relationships could bias the objectivity of research, requiring disclosure or avoidance under the rules.

An information barrier within a firm that prevents non-public deal knowledge held by investment banking staff from reaching research analysts who cover the same securities.

A register of securities on which a firm has restricted research publication or trading because of confidential investment banking or other sensitive involvement.

A confidential internal record of issuers or securities whose research or trading activity requires heightened monitoring because of potential conflicts or sensitive information.

The mandatory publication of facts such as analyst holdings, firm relationships with the issuer, and compensation arrangements, so that readers can judge potential bias.

A statement in a research report revealing whether the analyst or the firm holds a position in the recommended security and the size of that holding.

A forecast of a security's expected future price stated in a research report, which must be explained and monitored for accuracy and consistency.

A firm's standardized label, such as buy, hold, or sell, assigned to a covered security, with disclosed definitions and the proportion of each rating in the coverage universe.

The principle that research judgments must be formed free from pressure by investment banking, sales, or issuer clients, and protected by firm policies and supervisory oversight.

The requirement that research be based on honest analysis and evidence rather than on incentives, personal interests, or the commercial goals of the firm.

The reasonable investigation and verification of facts underlying a research report before publication, ensuring that conclusions rest on reliable information.

Presenting another person's analysis, text, or ideas as one's own in a research report without attribution, which is prohibited professional misconduct.

Crediting the source of data, quotations, or third-party analysis used in research, so readers can verify facts and the analyst does not misrepresent others' work.

Material, non-public information about a security or issuer that, if traded upon or shared, would breach securities law and firm conduct standards.

Trading in a security ahead of a client or ahead of the publication of research that is expected to move the price, in order to profit from that knowledge.

An associated person's own dealing in securities, which is restricted and must be pre-cleared or reported to prevent conflicts with clients and firm research.

The prior approval a firm requires before an employee trades in a security, allowing compliance to check restricted lists and conflicts before the trade occurs.

A set period after a public offering during which a firm's research analysts may be limited in publishing reports or recommendations on the issuer's securities.

A window during which firm personnel are barred from trading a security or publishing research, typically around an offering or sensitive transaction.

A commercial arrangement between the firm and an issuer, such as underwriting or advisory work, which must be disclosed in research and managed through information barriers.

A statement explaining how research analysts are paid, confirming that pay is not tied to specific investment banking transactions or to favorable recommendations.

The pre-publication check by a supervisor or compliance staff that a research report meets content, disclosure, and accuracy requirements before release.

The periodic or transaction-based examination by compliance staff of research, trading, and disclosure practices to confirm adherence to regulations and internal policies.

The obligation to keep research reports, supporting data, communications, and disclosure records for the prescribed period so regulators can inspect them.

Any interaction between firm personnel and clients about research, including calls, emails, and meetings, which must be fair, accurate, and free of misleading claims.

Contacts between analysts and journalists or broadcasters, which are treated like public appearances and require care to avoid selective disclosure or misleading statements.

Sharing material non-public information or research views with chosen clients before broader publication, which undermines fair treatment and may breach rules.

The duty to treat all clients equitably when distributing research and recommendations, without giving favored clients advance access to price-sensitive views.

Any approach to a client or prospective client intended to induce a purchase or sale of securities, which must be accurate and not based on misleading research claims.

The process of gathering a client's financial situation, objectives, and risk tolerance before offering research-based advice suited to that client.

The requirement that a recommendation or research-based advice be appropriate for the specific client's investment objectives, horizon, and capacity for loss.

Promotional content that references research or recommendations, which must be fair, balanced, consistent with the underlying report, and approved under firm procedures.

The formal process through which clients can raise complaints about research services or advice, with defined escalation and resolution timelines.