Sell-side: Difference between revisions

Sell-side (view source)

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-{{a|people|}}A [[broker]], [[dealer]] or [[market-maker]]: one given to offering financial services and products  with a view to ''selling'' them — hence, the ''sell-side'' — to the rapacious class of institutional investors and their agents and investment advisors whom, since they ''buy'' these things, we generally know as the “[[buy-side]]”.
+{{a|people|}}{{d|Sell-side|sɛl saɪd|n|}}
+A [[broker]], [[dealer]] or [[market-maker]]: one given to offering financial services and products with a view to ''selling'' them — hence, the ''sell-side'' — to the rapacious class of institutional investors and their agents and investment advisors whom, since they ''buy'' these things, we generally know as the “[[buy-side]]”.
+The [[sell-side]] are also known as [[broker]]s, [[dealer]]s, and [[broker-dealer]]s. [[Broker]]s act as [[agent]]s to put a buyer and a seller together, and charge a [[commission]]. [[Dealer]]s act as [[principal]], buying from a seller, and on-selling to a buyer, but the economic upshot of what they do in either case is the same. They take a commission (brokers), or a spread (dealers), but try not to take on market risk.
+Swaps are inherently principal contracts, so a person arranging swap transactions is always a “[[dealer]]”.
 Three important things to bear in mind about the [[sell-side]]: