Public Markets

Exchanges where securities trade among buyers and sellers with publicly reported prices and consensus estimates. A key dynamic: stocks react not to how results compare to sell-side consensus but to how they compare to buy-side consensus (which is never publicly disclosed). Sell-side analysts serve the market’s information function — distributing company data, building consensus, enabling corporate access — rather than directly generating alpha. The implication for Capital Allocation: understanding what the buy-side already expects, not just what Bloomberg consensus shows, is the real edge. See also Equity Research and Information Asymmetry.

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