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Buy Side vs. Sell Side. Buy-Side. Sell-Side. Sell-side professionals issue, recommend, trade and "sell" securities for the investors on the buy-side to "buy" for their clients. Asset managers who represent individual and institutional investors
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Buy Side vs. Sell Side Buy-Side Sell-Side Sell-side professionals issue, recommend, trade and "sell" securities for the investors on the buy-side to "buy" for their clients. Asset managers who represent individual and institutional investors “Buy” assets with the goal of increasing client wealth Make money from performance commission and maintenance fees Use only public information Represent institutions who want to raise capital “Sell” debt and equity products and research to the buy-side Make money off of trading commissions and transaction fees Have access to private information
Careers in Finance Buy-Side Sell-Side Client-Side Corporate Finance Investment Management Mutual Funds Hedge Funds Insurance Companies • Investment Banks • Corporate Finance • Sales and Trading • Brokerage Firms
Investment Banking Corporate Finance Hierarchy: Analyst Associate Vice President Director Managing Director “If you like fast-paced, deal-oriented work, are at ease with numbers and analysis, have a tolerance for risk, and don't mind putting your personal life on hold for the sake of your job, then investment banking may be a great career choice.” -www.wetfeet.com Investment banks provide underwriting and advisory services to institutional clients Serve as ‘consultants’ to companies in need of capital Bulge Bracket, Middle Market, Boutique Firms
Investment Research Sell Side: Sell side equity research falls under the investment banking umbrella Buy Side: Mutual funds, asset management firms, commercial banks, insurance companies, and pension funds all hire research analysts and associates to analyze their investment direction Equity analysts typically have a gift for mathematical analysis and number crunching, proficiency with computers, above-average writing skills, a strong interest in economic trends, and high standards of personal integrity. Provide timely, in-depth analysis of companies, industries and the world economies Develop incredible expertise in specific industry or product Held accountable for research and recommendations