Tuesday, July 28, 2020

The Difference Between the Buy-Side and Sell-Side of Finance

For more than two decades, Marguerite Cassandra Toroian has worked in the financial sector as both an analyst and an executive. Marguerite Cassandra Toroian started her early career as a buy-side analyst for Emerald Asset Management and Ryan Beck & Co.

Many finance professionals use “buy-side” and “sell-side” to describe their work. Sell-side finance work largely refers to investment banking, though it also applies to sell-side traders and researchers. The goal of these individuals is to support the buy-side of the industry. This is done by creating traded securities by helping companies raise equity and debt capital. It also involves promoting and selling traded securities to investors, including hedge funds and insurance companies.

The investors who purchase the securities created by the sell-side of the industry are part of the buy-side of the industry. This side refers to any individual or entity that purchases and invests in large amounts of securities to assist with either fund or money management. Asset managers, retail investors, institutional investors, and hedge funds are all part of the buy-side. Furthermore, buy-side analysts, much in the same way as sell-side analysts, evaluate financial reports and news to make recommendations about financial products.