Is sales and trading part of finance?

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Darrick Yost asked a question: Is sales and trading part of finance?
Asked By: Darrick Yost
Date created: Thu, Apr 8, 2021 10:55 PM
Date updated: Sat, Jun 25, 2022 11:25 PM

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Top best answers to the question «Is sales and trading part of finance»

Sales and Trading (S&T) is a group at an investment bank. Investment banks act as intermediaries that consists of salespeople who call institutional investors with ideas and opportunities, and traders who execute orders and advise clients on entering and exiting financial positions.

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Sales and Trading both are a very crucial part of investment banks. Under sales, a salesperson needs to interact with clients and sell investment ideas to them. Where traders are secondary persons and they need to execute the orders effectively.

Sales and Trading is one of the main functions performed by the investment bank in the country where the investment banking sales team pitch clients for trading ideas and the traders team who perform the activities related to the purchase and sell of the securities and the other financial instruments in the market for itself or on behalf of its clients.

The key difference is that in sales & trading, they want to see more evidence of passion for the financial markets rather than just “business” or “finance.” It’s also more important to show evidence of quantitative/analytical/math/coding skills because S&T has become more tech-driven.

Sales and trading is one of the primary front-office divisions of major investment banks. The term is typically reserved for the trading activities done by sell-side investment banks who are primarily engaged in making markets for institutional clients in various forms of securities. [1]

Definition of Sales & Trading: Sales & Trading is the division of an investment bank that pitches buy and sell recommendations to clients (sales) and then executes on those trades (trading). This is more difficult than it sounds because persuading clients to part with millions or tens of millions of dollars takes a lot of effort and trading large volumes of securities is complicated.

The expectation is that most students will enter sales & trading after completing previous finance internships – so, this question should not be difficult to answer. Essentially, it’s the last two sections of your story above: explain how you started in Field X, moved to Field Y, which was closer to sales & trading, and how you now you want to move directly into S&T at a large bank.

Equity sales trader: A trader/pm on the buyside gives you buy and sell orders. You then tell the sellside trader on your floor the order and the way that the clients wants it traded (VWAP, TWAP, or worked). It is then your job to stay on the trader's ass to ensure that the trader is trading it properly. You also discuss the reasons for the daily movements in specific stocks in contrast to equity salesmen who are more concerned with longer term catalysts.

Sales and Trading (S&T) is a group at an investment bank that consists of salespeople, who call institutional investors with ideas and opportunities, and traders, who execute orders and advise clients on entering and exiting financial positions. Sales and trading is the lifeblood that makes or breaks a securities firm

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