Which type of financial firm employs market analysts to assess the strengths and weaknesses of businesses?

Brokerage houses employ market analysts to assess the strengths and weaknesses of businesses as part of their core operation. These analysts conduct thorough research and analysis of market trends, individual stocks, and overall economic conditions to provide insights to investors. This analysis is critical for making informed recommendations about buying or selling securities based on their perceived value and performance in the market.

While commercial banks primarily focus on accepting deposits and providing loans, pension funds concentrate on managing retirement assets and ensuring they provide adequate returns over time. Investment firms also evaluate business prospects, but their primary role is broader and includes portfolio management and investment decisions across various asset classes. Brokerage houses specifically focus on the trading of securities and thus rely heavily on market analysts to guide their clients toward profitable investment opportunities and to understand the firms they are investing in.