What is institutional sales of securities companies?

First of all, traditional investment banks should be intermediaries of securities firms. It is not a direct participant in the transaction, but a matchmaking role. The two core parts of investment banking business are enterprise financing, securities sales and brokerage business. Then the investment banking business developed a buyer's business (asset management department, direct investment department). Today, a complete investment bank is mainly composed of investment banking department (traditionally helping enterprises to issue stocks and bonds), sales and trading department (providing trading channels for investors and brokerage business for selling stocks and bonds), asset management department (buyer's department, providing asset management solutions for customers) and self-operated department (trading in the market with its own funds). The rest are some support departments, including research department, capital market department, operation department and so on. Therefore, the institutional business department is the two most important front-office departments like the investment banking department. The agency business department can also be called the sales and trading department (some brokers have retail brokerage departments and also put them in the sales and trading department). In the primary market, the investment banking department helps customers to issue stock bonds, and the sales and trading department helps to sell stock bonds. One of them contacts the capital demander, the other contacts the capital supplier, and the middle department is called the capital market department. After the investment bank completes the project and can issue stocks and bonds, the capital market department will intervene and organize the issuance process such as inquiry, bookkeeping and placement. At this time, the sales and trading department is responsible for selling these issued stocks and bonds to investors, organizing roadshows, and promoting the company to investors together with the investment bank team. A huge sales network is crucial to the success of issuing stocks and bonds. This is the role of the sales and trading department in the primary market. In the secondary market, the sales and trading department is the most important department, just like the investment banking department in the primary market. China's securities trading adopts the mode of host matching, and all orders directly enter the central host of the exchange for matching, so there is no transaction in China and the trading ability does not exist, so the interaction between sales and trading is relatively lacking. So what can this department do, mainly to provide investors with trading channels, such as renting seats, and so on. And give some suggestions to investors' investment behavior. In fact, the sales and trading department is a department facing investors and customers. It manages customer relationships, provides trading channels and earns commissions. In the final analysis, it is still a brokerage function. Third, talk about the research department. Its essence is a backstage support department, which mainly writes investment value analysis reports for the initial public offering of the primary market (it should be noted that the investment banking department and the sales and trading department have strict firewall systems to prevent conflicts of interest, and the research department should have a cross-wall agreement to serve the investment banking department), covering the macro, industries and companies in the secondary market, researching the investment targets, and then making trading suggestions. The industry researcher we usually know is in this department. Finally, why are some business departments in the office? This is because the sales and trading department in China can't play a role. As I said just now, there is no transaction and no market maker system in China. The transaction does not exist. In other words, there is no difference in which securities company to trade. So at this time, the transaction will generate commission anyway. Which brokerage company should you deal with? The differences in the research of various brokers are reflected, and the well-studied brokers naturally get more trading commission income. Therefore, the sales departments of some institutions are placed in research institutes, but some research departments are placed in sales and trading departments as auxiliary departments, and most of them are still two parallel departments. The customers of the institutional business department are institutional investors, and we collectively call them buyers. In China, they include: Public Offering of Fund companies (or mutual funds), private equity companies (or hedge funds), insurance companies, national social security funds, trust companies, finance companies and so on. What do you sell? This is what people don't understand. Since this department is called sales department, what does it sell? Is it a research report? We need to understand the connotation of the agency business department. The agency business department is a department that provides investment advice and earns commission from the customer's point of view. It sells a service, not a one-off, continuous, daily occurrence. To be exact, we sell ideas, a kind of suggestion, comprehensively utilize the research viewpoints of research departments, integrate research resources, and provide suggestions for institutional investors' investment behavior. Our view is to help customers make money, not to sell reports as everyone understands. Therefore, the sales department of the organization and the sales that everyone usually knows are not a concept. As for why it is called sales, the word is translated from abroad. Why is it called sales abroad? Because their direct role in the primary market is to sell stocks and bonds or other financial derivatives to customers, and when interacting with traders in the secondary market, they also recommend the profit model of buying and selling securities to earn commission income, so it is called sales. It is worth mentioning that we will discuss stock sales, not bond sales transactions, because that is different. There is an over-the-counter market for bond sales transactions, and commercial banks have greater voice, so we will not discuss it. 3. What is the daily work content of organizing the sales department? A day in the company's sales department begins with a morning meeting. At this time, you should know something about the financial news and important events of the previous night and morning. At the morning meeting, colleagues in the research department will come out to express their opinions on the stocks they cover, and their research reports will also be sent to customers. Colleagues in the sales department will get more information and answer questions about the challenge researcher of this company. After the morning meeting, sales should choose the stocks that are most worth recommending to customers. At this time, it is time to test sales. A junior salesperson may only listen to the opinions of researchers, while an experienced salesperson will pick out the stocks that are most beneficial to customers and find some truly underestimated opportunities to recommend to his customers. At this time, the sales staff will pay close attention to the market, observe the market, read the analyst's mail, find the best choice and pass it on to our customers. It should be pointed out that sales don't necessarily need to tell all the opinions of analysts to customers, and the research department generates research opinions and feeds them back to sales, but sales can independently choose good investment cases at their own level for customers, because customers' demand preferences and the qualifications of sales personnel are different, so not all investment cases are recommended. In addition, sales also need to comprehensively use research resources to create value for customers, including organizing analyst roadshows, investigating listed companies, inviting and organizing investment strategy meetings, and so on. When the company's investment banks issue shares, the business department needs to cooperate with the investment banking department and the capital market department to contact and organize institutional investors to participate in inquiry and roadshows. Sales need to keep in touch with customers, maintain good relations, and bring high commission income and high ranking to the company. Is it possible for a person with sales ability to do a good job in the sales department of an organization? Actually, it's not.