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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Analyst Sponsorship


Most stock brokerages employ analysts. See sellside analyst for details.

Despite being wrong well over 50% of the time, these analysts continue to write opinions about stocks and publish financial models. And Wall Street still listens, even though they know their track record. Stock brokerages even pony up money in trading dollars and commissions for these guys—much like your local weather channel continues to pay for the meteorologist who's only right about 30% of the time.

Analyst sponsorship happens when an analyst gives a thumbs-up, positive review of a stock. When that happens, the stock usually goes up. If the sellside analyst works for a big brokerage like Goldman, he or she can have an especially big impact on a stock. Dolla dolla billz, y'all.