Overview of Investment Sales Associates and Traders

Investing and trading are some of the best ways to multiply the money in our hands. Investing involves stocks and bonds. In this, we sell and buy all things from the stock market. 

Trading relates to buying and selling on a daily or regular basis. In contrast, investment refers to purchasing a stock and selling it after a considerable time, allowing it to multiply gradually. Both investment and trading may cause profit or loss to the buyer. 

Sales and trading both are two different sections of an investment bank. Investment banks help in facilitating the trading processes. Investment traders work in these offices and advise people about shares and securities.

Sales and Trading

The investment banks are different from commercial banks like SBI, Kotak, etc. The primary difference between the two is function and users. Commercial banks are responsible for handling stuff like deposits, credits, etc. In comparison, investment is all about trading stocks and securities. 

Sales and Trading (S&T) are the components of investment banks that help regulate their trading process. Some of the best sales and trading banks are listed below.

• GS – Goldman Sachs & Co.

• MS – Morgan Stanley

• JPM – J. P. Morgan

• Evercore

• Centerview Partners

Responsibilities of the Sales and Trading Department in Investment Banking

Sales and Trading (S&T) fills up various positions for getting collective work done. The roles in S&T in an investment bank include:

• Sales: Sales and trading team are responsible for bridging the gap and maintaining the relationship with the clients and customers on behalf of the Investment banks.

• Trading: They manage the trading department. They are responsible for purchasing and selling the stocks.

• Structuring: They bring in expert knowledge about the products and sometimes interact with the clients. They work alongside the trading departments.

• Researching: Their responsibilities include researching different companies and finding all the related information. They provide clear-cut details about investments to the clients and help support the business development department.

Different Jobs and Career Options in Investment Bankings

The investing banks accommodate the candidates for various positions, including the following.

• Bank Manager

• Research Analyst

• Chief Financial Officer (CFO)

• Equity Research Analyst

These careers are the major roles that investment bankings offer to students.

Types of Products in Investment Banking

Investment banking trades on behalf of its customers and clients. Investment banks help clients with business and advise them on how to overcome financial problems. They also help in the field of research, trading, and sales. 

One cannot use everything for trading. The products that investment bankers handle are:

• Equities

• Equity derivatives

• Corporate bonds

• Government bonds

• Securities of mortgage and assets

• Credit derivatives

Investment Sales Associate

The investment banks employ candidates as investment associates or investment sales associates. The person interested in this field should have completed his Master of Business Administration (MBA).

• The investment sales associate can also be a person already working for commercial banks.

• The associates generally work in that position for about three years before taking the post of assistant manager.

• From a sales team to becoming an assistant, one must spend more than three years.

• People working as sales associates need to first work for an investment bank and know the basics.

• They work hand in hand with the analysts for analysing and understanding the market standards and investment plans.

• They act as a connection or bridge between the bank and the clients.

• The senior associates build a relationship between team associates and other members, such as two freshers. 

• The associates instruct the analysts about their day to day tasks.

• They are also involved in supervising and verifying the works of the juniors.

• The associates scan the reports and check other things before approval.

An Overview of Traders

The investment banks employ candidates as traders as part of the bank’s Sales and Traders (S&T).

• As a part of S&T, the traders are responsible for buying and selling stocks.

• An investment trader helps in trading within the financial market.

• They regularly trade on behalf of the Investment bank and its clients.

• The banks appoint various traders to deal with all their trading activities.

• Trading products vary from the things used in commercial banks.

• Traders have to work differently in investment banks

• The bankers do not just trade with stocks. They also deal with securities, bonds and commodities.

• The traders appointed by the investment banks help in investment and securities.

• The traders invest and trade according to the trade chart of the analyst and investment associates.

Conclusion

Sales and Trading (S&T) is a crucial section of investment banks. Investment banks make money for the government and their client companies by trading stocks, bonds, and commodities in the share markets. 

They appoint candidates for various positions like associates, analysts, traders, structuring, Vice Presidents (VP), and managers. 

A sales associate acts as a bridge or connection between the clients and the investment bank. An investment trader makes an investment and sells on the markets to make money for the bank.