What is the buy side?
The buy side is the half of Wall Street that buys into investment services. It refers to any company purchasing the services, either for themselves or their clients.
Where have you heard about the buy side?
The buy and sell sides are well-known terms in investment banking, making up the two sides of Wall Street. Some examples of buy-side firms are hedge funds, private equity funds, life insurance companies, mutual funds, unit trusts and pension funds.
What you need to know about the buy side.
The key difference in strategy between the buy and sell sides is that the buy side is secretive. Buy side analysts spend their time researching into formulas and strategies that can help the company beat the market and create value.
Often, this is done by making a buy recommendation for underpriced assets that haven't reached the public eye. Of course, if the buy side was to publish their strategy, it wouldn't work any more: everyone would move in on the asset and affect its price.
Find out more about the buy side.
Learn more about the other side of Wall Street, the sell side, with our definition.