Sell Side

AAA

DEFINITION of 'Sell Side'

The part of the financial industry involved with the creation, promotion, analysis and sale of securities. Sell-side individuals and firms work to create and service stock products that will be made available to the buy side of the financial industry. The sell side of Wall Street includes investment bankers who serve as intermediaries between issuers of securities and the investing public, analysts who perform stock research and make ratings, and the market makers who provide liquidity in the market.

BREAKING DOWN 'Sell Side'

The sell side and buy side of Wall Street are dependent upon each other - one could not operate without the other. The sell side tries to get the highest price possible for each security while providing service and support in the form of analysis and ratings. Any individual or firm that purchases stock with the objective of selling it later at a profit is from the buy side. The buy-side players include money managers at hedge funds, institutional firms, mutual funds and pension funds. Despite the fact the individual investors are technically on the buy side, the term is usually reserved for professional money managers.

RELATED TERMS
  1. Security

    A financial instrument that represents an ownership position ...
  2. Direct Market Access - DMA

    This refers to electronic facilities, often supplied by independent ...
  3. Broker

    1. An individual or firm that charges a fee or commission for ...
  4. Core Liquidity Provider

    An underwriter or a market maker that is a sizable holder of ...
  5. Analyst

    A financial professional who has expertise in evaluating investments ...
  6. Buy Side

    The side of Wall Street comprising the investing institutions ...
Related Articles
  1. Insurance

    What You Need To Know About Financial Analysts

    Thinking about relying on analyst recommendations for your next trade? We'll show you what to watch out for.
  2. Markets

    The Impact Of Sell-Side Research

    Sell-side analysts are not stock buyers or sellers - rather, they provide unbiased guidance to traders.
  3. Fundamental Analysis

    Assess Shareholder Wealth With EPS

    Find out if management is doing its job of creating profit for investors.
  4. Professionals

    So, You Want To Earn Your CFA?

    Here are some pros and cons to consider before you take the CFA charter plunge.
  5. Professionals

    Becoming A Financial Analyst

    A career as a financial analyst requires preparation and hard work, but the payoff can be especially rewarding.
  6. Personal Finance

    RV Travelers: A Niche Market For Advisors

    RV travelers can provide an interesting challenge for advisors.
  7. Personal Finance

    Testing 3 Types Of Analysts

    Different clients require different research reports. Which type of analyst do you need?
  8. Options & Futures

    The Chinese Wall Protects Against Conflicts Of Interest

    After the crash of 1929, this barrier helped define ethical limits, but it did little to prevent fraud.
  9. Fundamental Analysis

    What Causes Inflation in the United States

    Inflation is the main catalyst behind U.S monetary policy. But what causes this phenomenon of sustained rising prices? Read on to find out.
  10. Mutual Funds & ETFs

    5 Mutual Funds that Hold Berkshire Hathaway Stock

    Discover the top five mutual funds most heavily weighted with Berkshire Hathaway stock, and the percentage of their assets dedicated to BRK.
RELATED FAQS
  1. How stressful is the typical corporate finance job?

    In the financial industry, corporate finance jobs are often contrasted with investment banking jobs. The traditional view ... Read Full Answer >>
  2. What is the difference between a buy-side analyst and a sell-side analyst?

    The main difference between these two types of analysts is the type of firm that employs them and the people to whom they ... Read Full Answer >>
  3. Can mutual funds outperform savings accounts?

    A mutual fund can – and should – outperform a savings account. In most cases, it should not even be a close race. Savings ... Read Full Answer >>
  4. Can mutual funds invest in private companies?

    Mutual funds can invest in private companies, which may come as a surprise to many investors. It is rare for a fund to have ... Read Full Answer >>
  5. What is the utility function and how is it calculated?

    In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >>
  6. Is there a situation in which wash trading is legal?

    Wash trading, the intentional practice of manipulating a stock's activity level to deceive other investors, is not a legal ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Bubble Theory

    A school of thought that believes that the prices of assets can temporarily rise far above their true values and that these ...
  2. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  3. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  4. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  5. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
  6. Dead Cat Bounce

    A temporary recovery from a prolonged decline or bear market, followed by the continuation of the downtrend. A dead cat bounce ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!