What is the difference between Buy Side and Sell Side?

The main differences between sell side and buy side come down to the role each side played for their clients and the personality types that do well on each side. The buy side refers to the firms that purchase securities and includes investment managers, pension funds, and hedge funds. The sell-side relates to firms that issue, sell, or trade securities, which includes investment banks, advisory firms, and corporations.

Sell-side firms usually have far more opportunities for aspiring analysts than buy-side firms. Buy-side is the side of the financial market that invests large portions of securities for the other side of the financial market. Sell-side deals with the creation, promotion, and selling of traded securities to the public.

In investment banking, you may have heard the terms “sell side” and “buy side.” Both of these terms are used in connection with each other. The “Sell Side” refers to the thoughts and actions that make the process of the buy side. The buy sides are the thoughts and actions involved in making the decision to invest. There are certain institutions involved with both the sell side and the buy side. However, they are not the same.

The sell side includes the market makers, stock brokers, commercial banking and the investment banking. The buy side includes the retail investing, institutional investors, asset managers and hedge funds. The structure of the sell side and the buy side are different. The sell side has a hierarchy and the buy side has a leaner structure.