Buy Side vs. Sell Side

1
Buy Side vs. Sell Side

• Buy-Side

• Sell-Side

• 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

Sell-side professionals issue, recommend, trade
and "sell" securities for the investors on the
buy-side to "buy" for their clients.
2
Careers in Finance

• Buy-Side

• Sell-Side

• Investment Management
• Mutual Funds
• Hedge Funds
• Insurance Companies

• Investment Banks
• Corporate Finance
• Sales and Trading
• Brokerage Firms

Client-Side Corporate Finance
3
Investment Banking

• 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

• 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
4
Investment Research

• 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

• 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.