Types of Market Analysts

There are many types of market analysts in stock markets analyzing, reviewing and reporting about companies, their fundamentals and growth prospective, future performances and more. We can classify these analysts into three broad classes as sell-side, buy-side and independent market analysts. Remember, we are not talking about individual analysts who provide daily or weekly market commentary/prediction; we are talking about big and small analysis firms.

1. Sell-side analysts – are analysts who are affiliated to a brokerage firm. They conduct vast primary research of companies’ fundamentals, management, sector and industry and competition to create detailed reports. The reports are sold to individual and institutional clients of the brokerage firm. Sell-side analysis is a cost and time consuming process but offer in-depth reports.
2. Buy-side analysts – are analysts who are affiliated to a fund. They conduct research with the goal for screening stocks to buy and sell. They cover more stocks than sell-side analysts but create brief reports and are distributed exclusively to the fund’s managers. Many buy-side analysts get market info from sell-side analysts.
3. Independent analysts or Indies– are analysts who are not affiliated to a fund or broker. They work independently for funds, brokers, institutional traders and other financial institutions on a fee basis. Indies need to disclose their relationship with the financial firm at end of their reports.

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