Buy-side

Asset managers and funds, whose analysts research for the firm's own portfolios. Their work stays internal and is judged by investment results rather than by readership.

Where you will meet it

Buy-side appears in 2 learning outcomes on the CFA syllabus. A few of them:

• Contrast research on the sell side with the buy side and explain what activist short sellers do
  CFA Level I · Equity Investments

  “Buy-side analysts work for asset managers and funds, and their research is internal, used to make decisions for their own portfolios, with success judged by investment results.”

• Name the main kinds of electronic trader and set out how they differ
  CFA Level III · Portfolio Construction

  “Buy-side traders use algorithms to execute institutional orders at low cost, splitting large orders to reduce impact.”

Practise it

• Today's practice question One question, with every wrong option explained.
• Free Level I diagnostic test Twelve questions that show which topics to start with.
• Free finance calculators Check your arithmetic on the exam's core formulas.

All terms beginning with B · Glossary