Buy definition

Buying a financial instrument means taking ownership of it from someone else, whether it is a commodity, stock or another asset.

Often in trading, buying an asset will not result in taking possession of it in physical form. Buying can also be referred to as ‘going long’, depending on the security being traded.

Buy recommendations

A buy recommendation is one of five ratings generally given by a research firm or broker. It states that the firm or broker believes that an asset’s price will increase in the near future. It is more positive than a neutral rating (also known as a hold rating), but less so than a strong buy. The other ratings given are sell or strong sell.