What is the primary purpose of a research report?

The primary purpose of a research report is to provide analysis, evaluation, and recommendations regarding stocks. Research reports serve as comprehensive documents that outline a thorough examination of a company's financial health, market position, and operational performance. These reports typically assess various factors such as earnings, revenue growth, competitive landscape, and macroeconomic conditions that may affect the stock's future performance.

Researchers compile data from different sources, including financial statements, industry reports, and economic indicators, to produce insightful evaluations. The resulting analysis is aimed at helping investors make informed decisions about buying, holding, or selling stocks. The recommendations offered in these reports can help clients understand the potential risks and rewards of investing in a particular security.

While outlining company mission statements, analyzing daily trading volumes, and summarizing market trends can all be included in research findings, they are not the primary focus of a research report. Instead, these elements may serve as supplemental information that enhances the overall analysis but do not constitute the main objective of the report.