recommendation

Definition
An opinion given by an analyst to his/her clients about whether a given stock is worth buying or not. Wall Street investment firms employ thousands of analysts whose job is to issue reports and recommendations on specific stocks. These analysts typically look at the company's fundamentals and then build financial models in order to project future trends, most notably future earnings. They then use these projections as a basis for issuing recommendations on whether or not they think the stock should be bought or sold. Each brokerage has its own terminology, which makes it difficult to compare recommendations between brokerages, but the most common ratings are (in descending order of quality) strong buy, buy, hold, and sell.




recommendation is ...
... part of the
Brokerages, Trading and Investor Relations subjects.


Related Terms

coverage -  More
blanket recommendation -  More
consensus recommendation -  More
advisory letter, broker recommendation, financial analyst, Know Your Customer, market letter, newsletter, research department, Rule 405, securities analyst, Suitability Rules


recommendation appears in the definitions of these other terms on BusinessDictionary.com

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