Sell side firms are the particular firms which are involved in the creation, promotion and sale of financial instruments like stocks, bonds, foreign exchange etc which are used by the buy side firms. Typically the equity research companies, brokers and dealers are the sell firms which are responsible of creating research reports regarding different financial instruments and help to complete trading in financial market.
They play a critical role in running financial markets by providing all the research work and liquidity in the market by acting as counterparties. Sell side analysts follow a set of companies or a particular sector for their continuous research. They use different financial models to study company performance and determine valuations of companies in order to provide their recommendations (buy/sell/hold etc).
Sell side firms include
⦁ Equity Research companies