Introduction to Research and Sales & Trading in Investment Banking
In this section, we will explore the roles of research and sales & trading departments in investment banking.
Research Department
The research department prepares reports on specific stocks and shares them with institutional investors.
Institutional investors may rely on these reports for trading decisions.
Investment banks match buyers and sellers to execute trades without significantly affecting the execution price.
Sales Department
The sales department communicates with institutional investors based on the research recommendations.
They provide insights on potential stock movements to portfolio managers.
Sales staff facilitates trades by passing them to traders from the investment bank.
Trading Department
Traders execute buy or sell orders for institutional clients while minimizing execution prices.
Traders monitor price charts using trading terminals like Bloomberg terminals.
Conclusion
Research, sales, and trading are integral parts of investment banking, working together to facilitate trades and generate profits for the bank and its clients.
Timestamp links have been added to each bullet point for easy reference to the corresponding part of the video transcript.
Video description
In this video on Sales and Trading, we discuss What is Sales & Trading, Role of Sales Function in Investment Banking and role of Trading in Investment Banking
Role of Sales and Trading in an Investment Bank
The sales team are in touch with the clients like the Mutual Funds, Portfolio Managers, Insurance companies etc. Sales team appraise them about the industry knowledge, market movements, and recommendations of buy and sell. Since the sales team do not perform financial analysis, they rely on their equity research teams for inputs.
Sales team scout for trading by their clients to earn commissions.
Trading team in an Investment Bank
Once the trade order is received from the Sales Team, the trading team executes the order in such a way that it is most beneficial to its clients (by way of lowest price for buy or highest price for sell)
For more detail, please refer to https://www.wallstreetmojo.com/sales-and-trading-in-investment-banking/"
Here is the link to all the parts of Investment Banking Tutorial
1. What is Investment Banking? - https://www.youtube.com/watch?v=32fLCPcsffs&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=1
2. Investment Banks vs Commercial Banks - https://www.youtube.com/watch?v=W-vc9C9WiyQ&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=2
3. What is Equity Research? - https://www.youtube.com/watch?v=5jrG3r0yzkE&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=3
4. What is Asset Management Company? - https://www.youtube.com/watch?v=L78yZeJ9vlY&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=4
5. Buy Side vs Sell Side - https://www.youtube.com/watch?v=gjxt-Y8ox_8&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=5
6. Sales and Trading in an Investment Bank - https://www.youtube.com/watch?v=cqLEf1VtzJc&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=6
7. Raising Capital - https://www.youtube.com/watch?v=depNuCXdnJY&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=7
8. Underwriting of Securities - https://www.youtube.com/watch?v=BWTlUHiUtp4&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=8
9. Market Making - https://www.youtube.com/watch?v=P_wt9oAShCI&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=9
10. Mergers and Acquisitions - https://www.youtube.com/watch?v=504mHC1wFyI&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=10
11. Reorganization and Restructuring - https://www.youtube.com/watch?v=rzdC_5UdJsg&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=11
12. Investment Banking Roles & Positions - https://www.youtube.com/watch?v=uwaWeplI4so&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=12
13. Front Office vs Middle Office vs Back Office - https://www.youtube.com/watch?v=7PcnOjOhNTE&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=13
14. Conclusion - https://www.youtube.com/watch?v=7VJk0LbTd20&list=PLazLoBfxFADNXk71lolwonbnjRvCpWzp1&index=14
Connect with us!
Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1
LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/mycompany/
Facebook ► https://www.facebook.com/wallstreetmojo
Instagram ► https://www.instagram.com/wallstreetmojoofficial/
Twitter ► https://twitter.com/wallstreetmojo
