What it is:
How it works (Example):
In short, they both generate trading ideas and execute trades.
Sell side firms charge analyst's salary). Many sell side firms now delineate the cost of their products so that purchasing firms know they are paying an appropriate price for the best research available.firms for the product (the stock), the cost of trading the stock (the trader's salary) and the cost of the research (the
Why it Matters:
Companies on the sell-side of the financial industry seek to derive value by carefully researching stocks to fit their clients' individual investment strategies and by directly purchasing the securities off of the markets.
Buy side and sell side firms are the direct participants of every trade made on an exchange.