The Structure of Research, Sales & Trading

Example: Buy Recommendation on Google
BUY-SIDE FIRM e.g. Asset Managers, Hedge Funds, Pension Funds (Vanguard, Fidelity) SELL-SIDE FIRM e.g. Goldman Sachs, Morgan Stanley, JPMorgan

Portfolio Manager Decides he wants to purchase shares in Google for a portfolio according to the investment strategy & based on research from his analyst. Passes instructions to trading desk.

Salesperson Calls Portfolio Manager to recommend buying shares in Google for his portfolio

Research Analyst Writes Research Report with a “Buy” recommendation on Google

Buy-Side Analyst researches Google using Sell-side research reports & writes investment summary report for Portfolio Manager

Buy-Side Trader Passes order either buying or selling stock to sell-side trader

A
Sell‐Side
firm
strives
to
 be
the
number
one
rated
 by
clients
on
the
buy‐side.
 A
#1
ra:ngs
in
for
 research
analysts
by
 Ins:tu:onal
Investor
 translate
directly
into
$$ $’s.


Sales Trader Hybrid between Sales & Trading. Will discuss investment strategy with client & help them achieve their

Block Trader

Market Maker

Sign up to vote on this title
UsefulNot useful