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Sell-side Analyst
A sell-side analyst works for an investment bank or a brokerage firm and evaluates companies for future earnings growth and other investment criteria. Aside from stimulating buying and selling, the reliability of the research will help the client make a better decision. They sometimes place recommendations on stocks or other securities, typically phrased as "buy", "sell", or "hold." They offer their recommendations to clients. Buying and selling of securities will produce commissions for the brokerage. When a brokerage is also a market maker for the stock being rated, the analyst might influence the price of shares and the brokerage ultimately reap the benefits. Conflict of interest charges were filed against some sell-side analysts in 2002 after the dot-com bubble had collapsed. These inquiries led to SEC enforcement actions against Jack Grubman and Henry Blodget. The performance of sell-side analysts was compared with the results of buy-side analysts. In this study, the out ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Sell Side
Sell side is a term used in the financial services industry to mean providing services to sell securities. Firms or institutions on this side include investment banks, brokerages and market makers, who facilitate offering securities to investors, conducting research and creating financial products. The three main markets for this selling are the stock, bond, and foreign exchange market. It is a general term that indicates a firm that sells investment services to asset management firms, typically referred to as the buy side, or corporate entities. The sell side and the buy side work hand in hand and each side could not exist without the other. These services encompass a broad range of activities, including broking/dealing, investment banking, advisory functions, and investment research. Use In the capacity of a broker-dealer, "sell side" refers to firms that take orders from buy side firms and then "work" the orders. This is typically achieved by splitting them into smaller ord ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Brokerage
A broker is a person or entity that arranges transactions between a buyer and a seller. This may be done for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be confused with that of an agent—one who acts on behalf of a principal party in a deal. Definition A broker is an independent party whose services are used extensively in some industries. A broker's prime responsibility is to bring sellers and buyers together and thus a broker is the third-person facilitator between a buyer and a seller. An example would be a real estate broker who facilitates the sale of a property. Brokers can furnish market research and market data. Brokers may represent either the seller or the buyer but generally not both at the same time. Brokers are expected to have the tools and resources to reach the largest possible base of buyers and sellers. They then screen these potential buyers or selle ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Stock
Stocks (also capital stock, or sometimes interchangeably, shares) consist of all the Share (finance), shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all Seniority (financial), senior claims such as secured and unsecured debt), or Voting interest, voting power, often dividing these up in proportion to the number of like shares each stockholder owns. Not all stock is necessarily equal, as certain classes of stock may be issued, for example, without voting rights, with enhanced voting rights, or with a certain priority to receive profits or liquidation proceeds before or after other classes of Shareholder, shareholders. Stock can be bought and sold over-the-counter (finance), privately or on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Market Maker
A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a tradable asset held in inventory, hoping to make a profit on the difference, which is called the ''bid–ask spread'' or ''turn.'' This stabilizes the market, reducing price variation (Volatility (finance), volatility) by setting a trading price range for the asset. In U.S. markets, the U.S. Securities and Exchange Commission defines a "market maker" as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price. A Designated Primary Market Maker (DPM) is a specialized market maker approved by an exchange to guarantee a buy or sell position in a particular assigned security, option, or option index. In currency exchange Most foreign exchange trading firms are market makers, as are many banks. The foreign exchange market maker both buys foreign currency from clients and sells it to other clients. They derive income from the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Conflict Of Interest
A conflict of interest (COI) is a situation in which a person or organization is involved in multiple wikt:interest#Noun, interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations in which the personal interest of an individual or organization might adversely affect a duty owed to decision-making, make decisions for the benefit of a third party. An "interest" is a commitment, obligation, duty or goal associated with a specific social role or practice. By definition, a "conflict of interest" occurs if, within a particular decision-making context, an individual is subject to two coexisting interests that are in direct conflict with each other ("competing interests"). This is important because under these circumstances, the decision-making process can be disrupted or compromised, affecting the integrity or reliability of the outcomes. Typically, a conflict of interest arises when an individual occupies tw ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Dot-com Bubble
The dot-com bubble (or dot-com boom) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Internet, resulting in a dispensation of available venture capital and the rapid growth of valuations in new dot-com Startup company, startups. Between 1995 and its peak in March 2000, investments in the NASDAQ composite stock market index rose by 80%, only to fall 78% from its peak by October 2002, giving up all its gains during the bubble. During the dot-com crash, many online shopping companies, notably Pets.com, Webvan, and Boo.com, as well as several communication companies, such as Worldcom, NorthPoint Communications, and Global Crossing, failed and shut down. Others, like Lastminute.com, MP3.com and PeopleSound were bought out. Larger companies like Amazon (company), Amazon and Cisco Systems lost large portions of their market capitalizati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Jack Grubman
Jack Benjamin Grubman is an American former managing director of Salomon Smith Barney and the lead research analyst for the telecommunications sector. Personal life He was born in Northeast Philadelphia, Pennsylvania, to Isador and Mildred Grubman, who was one of 12 children of Russian Jewish immigrants. His father worked for the City of Philadelphia Sanitation Department, while his mother worked at a home as dressmaker. He holds a bachelor's degree in mathematics (cum laude) from Boston University and a master's degree in probability theory from Columbia. Career In 1977, he started work at AT&T. In 1985, he moved to PaineWebber. By 1994, he was making a million dollars a year and moved to Salomon Brothers. During this period, he was the most important analyst of the telecommunications industry during a time of great upward activity in the sector. In 1998 when Salomon Brothers became Salomon Smith Barney, he was the managing director and became Head of Global Telecommunications R ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Henry Blodget
Henry McKelvey Blodget (born 1966) is an American businessman, investor and journalist. He is notable for his former career as an equity research analyst who was senior Internet analyst for CIBC Oppenheimer and the head of the global Internet research team at Merrill Lynch during the dot-com era. Blodget was charged with civil securities fraud by the U.S. Securities and Exchange Commission and settled the charges. Blodget is the co-founder and former CEO of ''Business Insider''. Early life and education Blodget was born and raised on Manhattan's Upper East Side, the son of a commercial banker. He attended Phillips Exeter Academy and received a Bachelor of Arts degree in history from Yale University, where he was a member of The Society of Orpheus and Bacchus. After college, he taught English in Japan, then moved to San Francisco to be a writer while supporting himself by giving tennis lessons. He was also a freelance journalist and a proofreader for ''Harper's Magazin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Buy-side Analyst
Buy-side analysts ("buy-siders") work for buy side money management firms such as mutual funds, pension funds, trusts, family offices, and hedge funds. They are tasked with identifying investment opportunities that will improve the net worth of the portfolio for which they work by recommending which securities to buy, hold, or sell. A buy-side analyst typically works in a mutual fund, pension fund, or other non-brokerage firm, and provides research and recommendations exclusively for the benefit of the company's own money managers (as opposed to individual investors). Unlike sell-side recommendations and reports—which are meant for the analyst's brokerage firm's clients, and the broad outlines of which the press often widely disseminates—buy-side recommendations are not available to anyone outside the firm. If the buy-side analyst stumbles upon a formula, vision, or approach that proves effective, it is kept secret. One key difference between buy-side and sell-side a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Securities Research
Security (finance), Securities research is a discipline within the financial services industry. Securities research professionals are known most generally as "analysts", "research analysts", or "securities analysts"; all the foregoing terms are synonymous. Research analysts produce research reports and typically issue a recommendation: buy ("overweight (stock market), overweight"), hold, or sell ("Underweight (stock market), underweight"); see Stock valuation, target price and trade idea. These reports can be accessed from a number of sources, and brokerages will often offer the reports free to their customers. Research can be categorized by the security type, as well as by whether it is buy-side research or sell-side research; analysts further focus on particular industries. Although usually associated with fundamental analysis, research also focuses on technical analysis, and reports will often include both. See also . Analyst specialization Securities analysts are common ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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Trade Idea
Trade ideas (or trading ideas, or "Electronic Alpha-Capture") are investment ideas, typically equity related, ("long" i.e. buy, or "short" i.e. sell) which are sent by institutional stockbrokers to their institutional clients (i.e. this is not a service provided to private clients); recipients of trade ideas are thus hedge funds, a bank’s proprietary trading desks, and money managers. Trade ideas are sent to the client with a recommendation to buy or sell, an investment value (e.g. $2 million) and often a timeframe and an indication of level of conviction. The most active consumers of Trade Ideas are funds using quantitative or systematic strategies. They typically propose a trade in a specific stock and are developed by the individual idea author’s (e.g. a salesman) own knowledge of their client’s particular area of investment interest, and so will take into account: the client’s investment style, portfolio size and the sector and geographic focus. Brokers only s ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |