Two major types of financial analysts

Assignment Help Management Theories
Reference no: EM13967909

There are two major types of financial analysts: buy-side and sell-side. Buy-side analystswork for investment firms and make share recommendations that are available only to themanagement of funds within that firm. Sell-side analysts work for brokerage firms and makerecommendations that are used to sell shares to the brokerage firms' clients, which include individual investors and managers of investment funds

.a. What would be the differences in tasks and motivations of these two types of analysts?

b. Many market participants believe that sell-side analysts are too optimistic in their recommendations to buy shares, and too slow to recommend sells. What factors might explain this bias?

c. On the other hand, some researchers have found that sell-side analysts can be pessimistic in their forecasts, particularly early in the forecast period, in order to gain the favour of managers. Why might this occur?

600 Words max

Reference no: EM13967909

Questions Cloud

Write down the form of the partial fraction expansion : Write down the form of the partial fraction expansion for given expansion
Current value of the company stock : If the discount rate is 7 percent, what is the current value of the company's stock?
Corporate shareholder value objective and share holder value : What is the connection between corporate shareholder value objective and share holder value analysis ? is it that both focus on cash flow and not profit , taking into account the element of risk through adjusted WACC and time value of money .
What types of feedback the person is hearing from the coach : What is the coach saying, when is he or she saying it, and what seems to be the result? Basically does the person's performance change or improve?
Two major types of financial analysts : There are two major types of financial analysts: buy-side and sell-side. Buy-side analystswork for investment firms and make share recommendations that are available only to themanagement of funds within that firm. Sell-side analysts work for brokera..
Show that this parameter goes to zero at high snr : One way to quantify the randomness of a random variable is by the ratio of the standard deviation to the mean. Show that this parameter goes to zero at high SNR. What about low SNR? Does this make sense to you in light of your understanding of the..
Write a function that computes how much daylight is there : This function models the amount of daylight in Boston when t records the day of the year. How much daylight is there for t=1, t=365/2, t = 35?
Believe organizations that hire contingent workers : Do you believe organizations that hire contingent workers who would rather have permanent employment are exploiting them? Should organizations be legally required to provide some basic level of benefits such as health insurance, vacation, sick leave,..
Calculate fraction fp defined as the ratio of interference : Assuming that the interference emanates from the center of the cell, calculate the fraction fp defined as the ratio of the interference to the received power from a user at the edge of the cell. You can assume that all uplink transmissions are at..

Reviews

Write a Review

Management Theories Questions & Answers

  Development of that management theory

What were the influences that may have contributed to the development of that Management Theory?

  Sells a product or multiple products

Choose a large organization that sells a product or multiple products

  The consensus style of decision making is practical

The consensus style of decision making is practical where:  A. Acceptance is more important than quality  B. Quality is more important than acceptance   C. Both quality and acceptance are important  D. Team building is an issue

  Highlight the benefits of supply chain management.

Both the operations manager and the warehouse manager have been impressed with your argument in making a case of supply chain management and quality management within the company. The operations manager in your department wants you to conduct a forma..

  Erica contracted to purchase a giant 72 television from

case study erica contracted to purchase a giant 72 television from hometown electronics a large retailer for appliances

  Time for a personal question: do you like your job

Time for a personal question: do you like your job?

  Compute the current and acid test ratios

Create the financial statements for December 31, 2011, depict them in vertical format, and compute the current and acid test ratios.

  A flight reservation and management system

The term assignment is on a flight reservation and management system, where students are required to establish an m-commerce site to take care of the core transaction for an airline flight reservation business.

  Commmunication of internal competition

Describe the FIS project team's characteristics and diversity as well as the project team's processes ( taskwork and teamwork ) and commmunication of Internal Competition-A curse for Team Performance

  Complete knowledge management system

Identify and present the issues within the context of the assigned task and from this demonstrate a logical structure and layout for the paper and demonstrate knowledge of analyzing organisational information and of the literature relevant to the ..

  Performance management model

Which of the following is not part of the performance management model? Choose one answer.

  Customers and employees as the three main pillars

Write a two page paper about your understanding of Products, Customers and Employees as the three main pillars of an organization.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd