Forex

Research departments on Wall Street hire and maintain a group of
people called security or financial analysts. These individuals follow
and analyze a group of companies in a particular industry or
sector. Some analysts follow the banking industry, others specialize
in the semiconductor industry, and so on. The specialization within
an industry familiarizes the analysts with products and services
this industry delivers. It also allows analysts to speak the same
language as employees in the companies they cover. They get to
know the major players and their personalities. This process allows
analysts to mirror the insiders, even though they work for a different
industry in most cases.
Day after day analysts initiate or adjust ratings on particular
stocks. Rating or recommending stocks is an essential component
of the brokerage business. Wall Street analysts claim to have the
wisdom and means to predict when stocks are undervalued and
conversely when they are overvalued. Let’s look at what the analysts
do and what they produce.