Institutional investor rankings are very important factor for the clients. The sell side analysts play a major role in the process of investment as these analysts suggest the appropriate stocks for the purpose of investment. The institutional investors ranking is a major factor for the institutions.
The institutions buy huge amount of shares and so the selection should be appropriate.
Most of the times the individual investors are not related directly to the sell-side analysts but they are also influenced by these professionals.
About Institutional Investor Rankings
The Institutional Investor Magazine has a high reputation in the sector. The magazine performs a survey in the market regarding the accuracy of a sell-side analysts suggestion. For the purpose, the magazine consults a number of buy-side analysts to know their opinion about several sell-side analysts. The buy-side analysts invest in a number of stocks to for treasury departments, mutual funds and a lot more. For the purpose of selecting appropriate stocks, the sell-side analysts are consulted.
The buy-side analysts forms their opinion on the sell-side analysts by the accuracy of their assumption about a particular stock. The judgment of the buy-side analysts decide the rankings of the institutional investors. These poll results are published in the Institutional Investor Magazine.
Importance of Institutional Investor Rankings
The ranking of institutional investors, as well as, of the sell-side analysts is very important because it decides the size and dependability of the client base in the future. On an individual level the sell-side analysts, with high ranking, can expect high salaries from different investment advisory firms. At the same time, the institutional investment firms with more highly ranked analysts can attract more clients than their competitors. There are a number of companies that want to generate funds through IPOs, mergers and acquisitions and so on. In such cases only the firms with a number of highly ranked analysts will be preferred as they can provide more positive results than others.
Last Updated on : 5th July 2013