ELI5: Explain Like I'm 5

Securities research

Okay, so let's say you have some money and you want to use it to buy a toy. But first, you want to find out which toy is the best and will bring you the most joy.

In the same way, when people have money to invest in stocks (which are like toys for grown-ups), they want to know which stock is the best to buy. That's where securities research comes in.

Securities research is like a grown-up looking at all the toys (or stocks) for you and telling you which one is the best to buy.

These grown-ups (called securities analysts) look at a lot of information about a company. They look at how much money the company is making, what their competition is doing, and what new products they have coming out. They use all of this information to decide whether they think the company is doing well or not.

Just like you might ask your friends which toy they think is the best, securities analysts also talk to lots of people who work at the company they're researching, as well as other experts in the industry.

Once they've gathered all of this information, they write a report that says whether they think the stock is a good buy or not. This report is called a research report.

People who are thinking about buying a stock can then use these research reports to decide which one to buy.

So, in summary, securities research is when grown-ups look at lots of information to decide which toys (or stocks) are the best to buy, and then tell you all about it in a report.