Skip to content

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

Which of the following is the main difference between sell-side and buy-side research analysts?

Sell-side analysts, usually at brokerages, publish research for the firm's clients, while buy-side analysts work for institutions such as mutual funds or insurers and produce research mainly for internal investment decisions. The distinction concerns the audience and employer, not asset class or price targets.

  1. ASell-side analysts work only on debt securities while buy-side analysts work only on equity
  2. BSell-side analysts are prohibited from issuing price targets
  3. CSell-side analysts typically publish research for clients of a brokerage, while buy-side analysts research mainly for the in-house investment decisions of institutions such as mutual fundsCorrect
  4. DBuy-side analysts publish research widely to retail clients for brokerage commissions

Explanation

Sell-side research is generally produced by brokerages and distributed to clients to support business. Buy-side analysts serve the internal portfolio managers of funds and similar institutions and normally do not publish widely. The other options misstate the asset focus or permissions.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Research Analyst Profession shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Research Analyst ProfessionFree diagnostic mock

More Introduction to Research Analyst Profession questions