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.

INVESTOPEDIA EXPLAINS '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. Direct Market Access - DMA

    This refers to electronic facilities, often supplied by independent ...
  2. Analyst

    A financial professional who has expertise in evaluating investments ...
  3. Broker

    1. An individual or firm that charges a fee or commission for ...
  4. Buy Side

    The side of Wall Street comprising the investing institutions ...
  5. Security

    A financial instrument that represents: an ownership position ...
  6. Core Liquidity Provider

    An underwriter or a market maker that is a sizable holder of ...
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. EPS is one of the most important and most used financial metrics in the realm of equity research.
    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. Investing

    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 make recommendations.A sell-side analyst works for a brokerage or firm ...
  10. What to include – and leave out – to create the kind of resume that will get you the interview that lands you the job.
    Personal Finance

    Resume Strategies To Get That Finance Job

    What to include – and leave out – to create the kind of resume that will get you the interview that lands you the job.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center