Reading 31: Equity Portfolio Management－LOS v

Bottom-up equity research focuses on individual stock valuation so the firms dividend yield, return on equity, and price-multiple would likely be included. Currency valuations are at the macroeconomic level and would be less likely to be included in a bottom-up approach.

Jane is using a combination of top-down and bottom-up. She starts at the country level and after finding attractive economic conditions, she then drops down to the individual stock level to find stocks that are attractive based on their valuations.
  

Buy-side equity research is used to formulate investment recommendations for an investment management firm. The analyst usually must present their investment recommendations to and have them approved by a committee. Buy-side research is not usually available to those outside the firm because this is how the firm hopes to establish their competitive advantage.

Sell-side research is often used by an investment bank to promote stocks the bank is selling. It is thus available to the public.

Buy-side equity research is used to formulate investment recommendations for an investment management firm. The analyst usually must present their investment recommendations to and have them approved by a committee. Buy-side research is not usually available to those outside the firm because this is how the firm hopes to establish their competitive advantage.

Sell-side research is often used by an investment bank to promote stocks the bank is selling. It is thus available to the public.

Sell-side analysts often work for an investment bank that uses the research to promote stocks the bank is selling. Sell-side research is also conducted by independent firms available for hire by investment managers. Ad valorem fees are straightforward and predictable. This is useful when the investor is budgeting investment fees. Performance-based fees are more complex to administer.