Sell Side

A sell side analyst is employed by a brokerage firm or a firm that manages accounts and makes recommendations to individuals. Every time the individual trade, the brokerage receives commissions, therefore there may be a potential conflict of interest. This does not necessarily mean that a sell side analyst publishes recommendations only to generate commissions for the brokerage, but it means that a sell side analyst’s loyalties are ultimately with his employer, the brokerage, and not the client. Also, a sell side analyst may issue a general recommendation targeting a general audience, which may not be suitable for an investor’s personal goals. Sometimes a sell side analyst may attempt to unload an unfavorable position the firm holds by trying to sell it to clients.

See buy-side analyst for more.

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