What is buy-side investment banking and how is it different from sell-side?

Buyside is generally used to refer to investment managers, mutual funds, pension plans, etc. Sellside is the major broker-dealers/investment banks. When a company is brought public, the investment bank underwriting the offering sells the issuance to the buyside. They then provide ongoing research coverage to those companies, plus many others.

Traditionally, sell-side research was provided to the investment managers who transacted trades through the big Broker/Dealers because it was assumed that the broker dealers had better access to the companies that they covered. However, after the implementation of Reg FD, that advantage has eroded, and most buyside shops now have their own research teams that may or may not use sellside research as an input. Those that do are certainly not using sellside analysis as their only research.

If you're just starting a career, and are interested in research, I would probably try to get in on the buyside. Sellside research is definitely a declining industry.

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