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A Few Related Terms

Broker
Sell-side
Buy-side
CFA

Analyst
Term category: Stocks
In 10 words or less: A financial professional who analyzes investments and makes recommendations.

Definition: A financial professional who analyzes investments. They often research the company in depth and issue their recommendation on whether or not you should invest in the company.

StockJargon Advice: Analysts are nice because they analyze companies' stock as their career, so they can devote far more time to research than a typical investor can. They also publish research reports. So if you can get your hands on one of these, you'll find lots of information about companies that you might not be able to find on your own.

Analysts also issue their opinions of stocks. However, be cautious, because analysts aren't always right. And, as you might remember, in the late 1990's, analysts regularly touted stocks that had no future...just because their firm had relations with the company being analyzed.

There are three main types of research analysts: those who work on the buy-side, those who work on the sell-side, and independent analysts.  If you're interesting in reading a great book about what it's like to be a sell-side analyst, I recommend you check out Wall Street Meet by Andy Kessler.


Related Articles These are topics analysts need to know about...

Corporate Earnings
Learn how companies report their earnings and how to use this information to decide what stocks to invest in…

How to Read an Annual Report
This brief page guides you through how to read a company's annual report.

Beginner's Guide to Financial Statements
The SEC has put this page together to help investor's navigate the various financial statements.

Related Books

Wall Street Meat by Andy Kessler
The Five Rules for Successful Stock Investing by Pat Dorsey
Investing for Dummies by Eric Tyson
Reminiscences of a Stock Operator By Edwin Lefevre

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