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

Which of the following best distinguishes a sell-side research analyst from a buy-side research analyst?

A sell-side analyst typically works for a brokerage and distributes research to clients, whereas a buy-side analyst works for an institution that manages money, such as a mutual fund, and mainly supports internal investment decisions. The roles differ by employer and by who uses the research.

  1. AA sell-side analyst works for an institution such as a fund house and the reports are used only internally for its own portfolios
  2. BA sell-side analyst typically works for a brokerage and distributes research to clients, while a buy-side analyst supports the investment decisions of an institution managing moneyCorrect
  3. CA buy-side analyst works only for stock exchanges and publishes reports on market surveillance
  4. DA sell-side analyst is prohibited from issuing buy or sell ratings

Explanation

Sell-side analysts are generally employed by brokerages or similar firms and circulate research to clients. Buy-side analysts work for fund houses, insurers or similar investors and their work mainly feeds internal investment decisions. The other options reverse or invent roles.

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