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NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Research Analyst Profession

A research analyst's report is considered to have a 'buy-side' orientation when it is primarily prepared for which audience?

Buy-side research is prepared mainly for institutions such as mutual funds, insurers and portfolio managers, and is used internally to guide their own investment decisions. It is usually not distributed publicly, unlike sell-side research issued by brokerages to their clients.

  1. ARetail investors who read it through newspapers
  2. BInstitutions such as mutual funds and PMS firms that use it internally for their own investment decisionsCorrect
  3. CStock exchanges for listing approval
  4. DCompanies being researched, for use in their annual report

Explanation

Buy-side analysts work for institutional investors such as mutual funds, insurers and portfolio managers, and their research supports the institution's own investment decisions, usually not published. Sell-side analysts, by contrast, work with brokerages and distribute research to clients. The other options describe unrelated uses.

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