In structuring a professional equity research report, how are Fact-Based sections distinguished from View-Based sections?

[ A ]Fact-Based sections contain only fictional corporate gossip, while View-Based sections contain audited statutory tax returns.

[ B ]Fact-Based sections are written exclusively by the company's marketing agency, while View-Based sections are drafted by stock exchange clerks.

[ C ]Both sections are identical and consist solely of raw unformatted balance sheet tables with zero written commentary.

[ D ]Fact-Based sections (financial statements, shareholding patterns, historical ratios, peer metrics) are sourced directly from audited filings; View-Based sections (business model strengths, key investment risks, valuation targets, buy/sell thesis) represent the analyst's proprietary qualitative synthesis.[ CORRECT ]

Takeaway

Option D is correct: Fact-Based sections (financial statements, shareholding patterns, historical ratios, peer metrics) are sourced directly from audited filings; View-Based sections (business model strengths, key investment risks, valuation targets, buy/sell thesis) represent the analyst's proprietary qualitative synthesis.

Derivation

A research report blends objective data with expert analytical judgment: (1) Fact-Based Sections: Objective, verifiable historical numbers and corporate data sourced from audited annual reports, quarterly filings, regulatory disclosures, and peer metrics (shareholding pattern, historical P/L, debt levels, revenue growth). (2) View-Based Sections: The research analyst's proprietary intellectual analysis and qualitative interpretations—including business moat assessment, management quality evaluation, industry growth drivers, downside risk factors, earnings forecasts, and target price recommendations. This tests research report architecture. A common error is presenting subjective views as indisputable facts.

Why the others fail

A — Fact-Based sections contain only fictional corporate gossip, while View-Based sections contain audited statutory tax returns.

Fact-based sections rely on verified audited public filings, while view-based sections present the analyst's reasoned investment thesis.

B — Fact-Based sections are written exclusively by the company's marketing agency, while View-Based sections are drafted by stock exchange clerks.

Research reports are drafted independently by registered research analysts, not corporate marketing departments or exchange clerks.

C — Both sections are identical and consist solely of raw unformatted balance sheet tables with zero written commentary.

A good research report integrates visual data charts, narrative explanations, and qualitative business analysis beyond raw tables.