Which entities are classified as "the Buy Side"?

The classification of entities as "the Buy Side" refers to those organizations and investors that purchase securities and assets to hold them for investment purposes. In this context, hedge funds and portfolio managers are prime examples of Buy Side entities because they actively manage investment portfolios for their clients or for themselves. Their primary objective is to maximize returns through strategic investment decisions, making them integral players in financial markets.

Hedge funds utilize various strategies to achieve high returns, while portfolio managers manage investment funds, often on behalf of institutional or individual investors. Together, they embody the characteristics of the Buy Side, which is distinct from the Sell Side—entities that create, promote, and sell securities, like investment banks and brokerage firms.

Considering the other options, while retail investors and commercial banks are also involved in the financial market, they do not encapsulate the professional and institutional traits typical of the Buy Side. Similarly, online brokerages act as intermediaries allowing individuals to invest but are not categorized as part of the Buy Side. Thus, hedge funds and portfolio managers stand out as the most representative of the Buy Side classification in this scenario.