Pronunciation: [sˈɛl sˈa͡ɪd] (IPA) 
Sell side is a term used in the investment industry to describe the part of the industry that sells securities. The word "sell" is pronounced /sɛl/, with the "e" sound being short and the "l" sound being emphasized at the end. The "side" part of the word is pronounced /saɪd/, with the "ai" sound being pronounced like the word "eye" and the "d" sound being emphasized at the end. Together, the word is pronounced /sɛl saɪd/.
Sell side refers to the segment of financial markets and industry participants that are involved in the selling and distribution of financial products and services. It primarily involves entities such as investment banks, broker-dealers, and other financial institutions that facilitate the sale of securities to clients. The sell side acts as the intermediary between the companies and institutions looking to raise capital or sell securities, and the investors interested in buying these securities.
Sell side activities encompass a range of functions including research, sales, and trading. Research analysts on the sell side provide insights and recommendations on various securities and investments to guide investors' decision-making processes. Sales professionals work closely with institutional clients, such as asset management firms, pension funds, and hedge funds, to pitch and market these investment recommendations and tailored financial products. Trading desks execute trades on behalf of clients, ensuring efficient pricing, liquidity, and timely execution of securities transactions.
Sell side firms are responsible for underwriting new securities issuances, such as initial public offerings (IPOs), and selling them to investors. They also provide liquidity to the market by making markets in various securities, offering bid and ask prices and facilitating transactions between buyers and sellers.
In summary, the sell side encompasses financial institutions and professionals that facilitate the sale of securities by providing research, sales, and trading services to both institutional and retail clients. They play a vital role in connecting issuers of securities with potential investors and ensuring smooth functioning of financial markets.
The term "sell side" originated in the financial industry, specifically in the field of investment banking.
The word "sell" refers to the act of selling or offering products or services to clients, while "side" indicates one side of a transaction or trade. In investment banking, the sell side typically represents firms or individuals who are involved in selling or facilitating the sale of financial products and services. This includes activities such as underwriting securities, making recommendations to clients, providing research reports, and executing trades.
The term gained popularity in the mid-20th century as a way to distinguish between different participants in the financial markets. The sell side is counterpart to the buy side, which refers to entities such as institutional investors, asset management firms, and hedge funds that are primarily focused on buying and investing in financial products.
