Buy-side vs. Sell-side in Finance (short description)
In search of a career amid the 5.0 Industrial Revolution, we youths often encounter these two words: tech and business. While the former is self-explanatory, in which technological products are continuously invented and developed, the latter seems to confuse our young minds now and then.
We have too many majors to decide on: economics, business administration, finance, marketing, international business, accounting, etc. That’s why in today’s blog, I will introduce you to one of the most common business majors: Finance, considering the buy side vs. sell side.
Their roles
For a financial investing progress to work, both sides need to get involved. Let’s say your company wants to issue shares; you’ll first need to come to the sell-side department. There, you’ll receive analyses and advice from the firm on which price per share you should set. In addition, they would also participate in promoting and selling your stocks to other investors.
On the other hand, the buy-side is responsible for many of these acquisitions of shares. Since they are holding capital and funds from clients, buying shares and managing them is the way to grow money.
2. Key differences
3. High-ranked institutions in the market
Sell-side:
Buy-side:
4. Entry requirements
As both are in the world of finance, there are some core fundamental skills employers demand:
Proficiency in Microsoft Office suite- Excel, Word, and PowerPoint.
Ability to make financial analyses and modeling.
Compiling research reports
However, regarding the primary work tasks and customers, here are some other skills that would be highly advantageous if you can provide:
Sell-side: handling client relationships, ability to work on multiple engagements, strong writing and quantitative skills.
Buy-side: industry expertise, update on global trends and market development, a sharp eye for potential investment deals, and raising capital.
5. Different views to consider
Because these terms have existed in the financial world for years, there comes a time when the real meaning and categorization get challenged. Upon researching this topic, I’ve found some compelling arguments to look at.
Remember, nothing is entirely true or false, especially concerning our career path and money; it’s better to have as many perspectives as possible.
Sum up
If you want to pursue a finance-related career, it is advised by many to choose what area (buy-side or sell-side) you would like to get involved in.
However, depending on your preferences, there are other aspects you would like to consider. For example, there’s the back office (which mainly does analyses and meticulous reports), and there’s the front office, which requires direct communication with clients.
Aside from the entry requirements mentioned above, you should join related competitions and events as much as possible to have that unique competitive edge.
Love,
mingox
