FINRA Series 86 Practice Exam 2025 – Complete Guide for Research Analyst Test Prep

A "buy-side" analyst is typically one who works for an investment firm or asset management company and is primarily involved in purchasing assets on behalf of their clients. This role is focused on investment decisions, analyzing securities to determine which ones to buy to meet the investment goals of the firm’s clients, which often include institutional investors such as pension funds, mutual funds, and endowments.

This kind of analyst uses their expertise to analyze financial statements, market conditions, and overall economic trends to make informed buying decisions. Their analysis is critical in portfolio management and contributes directly to the firm’s investment strategy.

In contrast, analysts who focus on selling securities, providing economic forecasts, or publishing independent research reports serve different functions within the financial ecosystem. Each of these roles plays a significant part in the markets, yet they do not fit the definition of a "buy-side" analyst, whose primary motivation is to acquire assets for investment purposes rather than advising on sales or generating independent insights without a direct investment function.