“Buy side” usually refers to financial analysts employed by fund management companies such as investment funds, insurance companies or other institutional investors. These companies have large sums of money which they seek to make profitable by investing on the stock exchange.

Analysts employed by these firms do their own analysis to help their company’s portfolio managers make good investment decisions. They are said to be on the “buy side” because the institutions they work for buy the investments they promote. We often talk about analysts on the buy side as opposed to analysts on the sell side, who tend to be more favourable toward the companies in which they invest. In fact, unlike buy side analysts, sales side analysts work for companies that “sell” investments to their clients.

Sell side definition

The “sell side” generally refers to financial analysts employed by brokers and investment banks. Read more

Financial analyst definition

A financial analyst is a professional whose job is to assess companies’ financial situations. They are responsible for carrying out in-depth studies of companies in order to assess their future prospects. Read more

Portfolio Manager definition

A portfolio manager is responsible for investing their clients’ money. Also known as a wealth manager, they work for high net worth individuals and institutional clients such as mutual funds or insurance companies. Read more