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. Security

    A financial instrument that represents: an ownership position ...
  3. Analyst

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

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

    The side of Wall Street comprising the investing institutions ...
  6. Core Liquidity Provider

    An underwriter or a market maker that is a sizable holder of ...
RELATED FAQS
  1. 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 ...
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. Investing

    Active Funds: Getting What You Are Paying For?

    Fund investing could have hidden costs that can potentially make a big impact on your final return, particularly over the long-term.
  10. Credit & Loans

    How To Become a Mortgage-Backed Securities Analyst

    Specializing in structured or derivative credit products like mortgage-backed securities requires education and prior experience in the mortgage field.

You May Also Like

Hot Definitions
  1. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  2. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  3. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  4. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  5. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  6. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
Trading Center