Analysts: Sell-side and buy-side

The terms sell-side and buy-side analysts are used to describe investment analysts who work in stock brokerages (selling ideas) and asset management companies (buying ideas). The job function, at the basic levels is similar for both analysts categories. Those working in the stock brokerages aim to develop products, in this case investment ideas, and then market the ideas to their clients at the asset management companies. Buy side analysts work in the asset management companies. While they do conduct research, they also assess some of these investment ideas from sell-side analysts. In the event they like some of those ideas, they are deemed to buy those ideas. Hope that helps to clarify the issue for those who are unaware.

~ by formulacaijing on June 25, 2008.