Buy Side vs. Sell Side

The buy side is the side that buys stuff. On the other hand, the sell side of the business is selling stuff. Easy enough to remember? So the question is what is buy side buying, and what is sell side selling?

The buy side consists of institutions such as private equity firms, venture capital, hedge funds, mutual funds, and other firms that are making investments in private and public companies. Buy-side firms make money through buying low and selling high, so their primary goal is to identify great investment opportunities and make sure to pay the right price for them.

Sell side consists of institutions that are selling research, advisory and other financial services to its clients (companies and investors). Sell-side firms make money through fees and commissions, so their primary goal is to work on as many deals as possible.

 

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