Buy Side

AAA

DEFINITION of 'Buy Side'

The side of Wall Street comprising the investing institutions such as mutual funds, pension funds and insurance firms that tend to buy large portions of securities for money-management purposes. The buy side is the opposite of the sell-side entities, which provide recommendations for upgrades, downgrades, target prices and opinions to the public market. Together, the buy side and sell side make up both sides of Wall Street.

INVESTOPEDIA EXPLAINS 'Buy Side'

For example, a buy-side analyst typically works in a non-brokerage firm (i.e. mutual fund or pension fund) 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 - which are meant for the public - buy-side recommendations are not available to anyone outside the firm. In fact, if the buy-side analyst stumbles upon a formula, vision or approach that works, it is kept secret.

RELATED TERMS
  1. Direct Market Access - DMA

    This refers to electronic facilities, often supplied by independent ...
  2. Money Manager

    A business or bank responsible for managing the securities portfolio ...
  3. Core Liquidity Provider

    An underwriter or a market maker that is a sizable holder of ...
  4. Research Note

    A statement from a brokerage firm or other investment advisory ...
  5. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
  6. Institutional Investor

    A non-bank person or organization that trades securities in large ...
Related Articles
  1. So, You Want To Earn Your CFA?
    Professionals

    So, You Want To Earn Your CFA?

  2. Becoming A Financial Analyst
    Professionals

    Becoming A Financial Analyst

  3. What You Need To Know About Financial ...
    Insurance

    What You Need To Know About Financial ...

  4. Testing 3 Types Of Analysts
    Personal Finance

    Testing 3 Types Of Analysts

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center