Cox Case Essay

Words: 3851
Pages: 16

Table of Contents
Executive Summary……………………………………………………………………………………...2
Question 1………………………..………………………………………………………………………….3
Question 2……………………………………………………………….…………………………………..4
Question 4………………………………………………………………………………………………......6
Question 5…………………………………………………………………………….……………………..7
Appendix………………………………………………………………………………………………………8
Bibliography…………………………………………………………………………………………………10

Executive summary

Laura Martin is a reputable equity analyst, who currently deals with the sell-side of equity analysis primarily in the cable industry. Equity analysts are divided into two categories, the buy-side and the sell-side and their main task is to compile financial information of companies along with market information and consult their
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They are also responsible for projecting the future profits of a particular stock in order to predict the future returns of that investment. There are two types of equity analysts, a buy side analyst and a sell side analyst. In essence the equity analyst searches for mispriced assets using the most sophisticated techniques. Due the fact that there are many analysts competing and searching for these mispriced assets, markets become more efficient i.e. the market price of an assets reflects more closely, its true value. The level of competition in the market makes it very difficult to find mispriced assets or the so called “free-lunch”.
A buy side analyst is employed by money management companies. They make internal recommendations and forecasts to portfolio managers and the research is not distributed widely but it is solely for the purposes of the firm to which the analyst is employed. A buy side analyst is usually employed to an investment bank or a money management firm. A sell side analyst on the other hand, works for a brokerage firm and follows a list of companies on which they provide regular and in depth reports. The reports generated are distributed or sold to a list of clients. The sell-side analysts cover a narrower range of companies and industries than a buy side analyst and this allows them to produce more detailed analysis using more sophisticated and tailored techniques.
The constituencies mentioned in the report are the