IB

Question 1

What does the Sell Side refer to?

Answer 1

Sell Side refers to a key function of the investment bank, namely to help companies raise debt and equity capital. This can be achieved through the sale of securities to investors on the Buy Side, including superannuation funds, hedge funds, insurance companies, or large asset management groups.

Question 2

What does the Buy Side refer to?

Answer 2

Investment managers, superannuation funds, private equity, hedge funds etc. that purchase securities or make other investments on behalf of their clients or themselves.

Question 3

What is a primary issuance?

Answer 3

The creation and sale of new Debt, Equity (IPO), new fundraising (new shares).

Question 4

Is there a market for purchasing shares in Private companies?

Answer 4

Not a traditional market (like the ASX, NYSE, Nasdaq etc.), however brokers can facilitate transactions between buyers or sellers, with any previous public issuances (equity capital raising) being used to estimate value of the shares. For example, an investor may have a broker contact an ex-employee to facilitate a purcahse of their stock.

Question 5

Are there any more formal markets for trading in Private companies?

Answer 5

Yes, https://forgeglobal.com/
https://www.moonfare.com/ (Private Equity),
Destiny Tech 100 (DXYZ)

Question 6

What do the Debt Capital Markets (DCM) involve?

Answer 6

The DCM team within the Investment Banking Division (IBD) will assist governments and large corporates with Bond issuances. Governments especially issue debt frequently in order to fund thier budgets.