• Also known as a Financial Analyst or Security Analyst. Analysts have expertise in evaluating investments, and typically are employed by brokerage firms, investment advisors, or mutual funds. They make buy, sell, and hold recommendations on securities, and many specialize in industries or sectors.
• Employee of a brokerage or fund management house who studies companies and makes buy-and-sell recommendations on their stocks. Most specialize in a specific industry.
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| ||Buy side analyst: A financial Analyst employed by a non-brokerage firm, typically one of the larger money management firms that purchase securities on their own accounts.|
| ||Coefficient of variation: Is a statistic which is used to determine the degree of relative dispersion. It extends standard deviation analyses. By definition, standard deviations are statistical measures of absolute dispersion. Therefore, it is difficult to compare the variability of two different asset classes or assets within those classses. It is computed by dividing the standard deviation of Asset I by the mean of Asset I. Similarly, the standard deviation of Asset II is divided by the mean of Asset II and so forth. These multiple coefficient of variation can then be compared against one another. By using the coefficient of variation, an Analyst can compare variation among relatively high and low priced securities. Similarly, the analyst can evaluate the volatility differences between commodities, currencies, stocks and bond markets.Abbreviated CV. A measure of relative dispersion used in comparing the risk of assets with differing expected returns. It is the ratio of the standard deviation divided by the mean (or expected return). It tells you the number of units of risk per unit of return.|
| ||Financial analyst: Also called securities Analysts and investment analysts, professionals who analyze financial statements, interview corporate executives, and attend trade shows, in order to write reports recommending either purchasing, selling, or holding various stocks.See Analyst.|
| ||Information coefficient: IC. The correlation between predicted and actual stock returns, sometimes used to measure the value of a financial Analyst. An IC of 1.0 indicates a perfect linear relationship between predicted and actual returns, while an IC of 0.0 indicates no linear relationship.|
| ||Investment analysts: Related: financial Analysts|
| ||Related Terms|
| ||Buy side analyst|
Sell side analyst
Wall street analyst
What to Know Before Declaring Your Financial Independence: Twenty-somethings may not realize it, but every time they enter a new phase of their life as young adults - perhaps starting college, a career or a family - they're also venturing into a new world of money management. Here are ways to be prepared. More...
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