Preparation of Research Reports

Function 4 is the center of Series 87. FINRA gives it most of the exam because research integrity starts before dissemination. The candidate needs to know what disclosures belong in a report, what approvals and certifications are required, how conflicts change the drafting process, and what a properly supported research product should contain.

Read this chapter as the report-building function. Start with the regulatory requirements that control drafting and approval, then move into the types of reports, thesis construction, and report components that make a research product fair, supportable, and exam-ready.

Series 87 section lessons

Use these section lessons as the main reading path for this Series 87 function. They keep research disclosures, independence, approvals, timing controls, dissemination channels, and recordkeeping tied to the exact exam workflow.

In this section

• Regulatory Requirements and Mandatory Disclosures
  Study Series 87 research report regulation, mandatory disclosures, rating systems, rating distribution, price charts, material conflicts, public-appearance disclosures, forward-looking statements, and disclosure checklists.
• Ratings, Price Targets, and Chart/Performance Disclosures
  Study Series 87 rating-system disclosures, rating distributions, price targets, historical price charts, performance context, valuation assumptions, non-GAAP charting, and risk context.
• Conflicts of Interest and Independence Controls
  Study Series 87 investment-banking conflicts, information barriers, issuer influence, analyst and household holdings, firm positions, market making, compensation conflicts, personal trading controls, and recusal or escalation.
• Approvals, Certifications, and Supervisory Review
  Study Series 87 approvals, supervisory analyst review, Regulation AC certification, research management and compliance roles, version control, corrections, heightened review, and audit trails.
• Communications Restrictions, Public Appearances, and Selective Disclosure
  Study Series 87 communications restrictions, public-appearance disclosures, issuer feedback, Regulation FD and MNPI controls, social media, retail and institutional communications, and timing fairness.
• Trading Restrictions, Compensation, and Publication Timing Controls
  Study Series 87 trading-ahead restrictions, analyst and firm trading controls, restricted lists, publication embargoes, compensation independence, quiet periods, Regulation M, public-offering conflicts, and non-GAAP controls.
• Research Report Types and Lifecycle
  Study Series 87 research report types and lifecycle controls, including initiations, rating changes, price-target changes, earnings notes, termination notices, short news notes, topical reports, industry reports, updates, and version control.
• Research Report Components and Evidence-Based Writing
  Study Series 87 research report components, including company overview, business model, competitive position, financial condition, management quality, industry outlook, thesis, valuation, key risks, source support, and plain-language writing.