CHAPTER 9

What Role Does the Research Analyst Play?

This chapter explores the world of the research analyst on the trading floor. Some trading floors use the term “sales, trading and research” and others merely “sales and trading.” Why is a distinction being made? Some banks talk about “revenue generators” vs. everyone else and research can fall inside or outside that space. What is the purpose of the research team? How can one bank consider them revenue generators and other banks not? In particular this chapter will explore what role they play on the trading floor and where their key relationships are. This chapter will also answer questions such as: What is a desk analyst? Who reads the research? Is it biased? Are there conflicts of interest? ...

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