Buy Side and Sell Side of the Financial

Responsible for the entire financial services portfolio at Publicis Sapient, former Fidelity Investments trader David Donovan serves as executive vice president of the firm. His portfolio management includes setting operational strategies for the company and managing relationships with investment banks. While at Fidelity, David Donovan gained extensive experience in institutional and equity trading on the buy and sell sides of the market.

When it comes to the markets, buy side and sell side are two distinct components that are intrinsically connected. Together, they make up the whole picture of the financial market.

In the buy side part of the financial market, hedge funds, investment managers, and pension funds focus on buying and investing in large portions of securities. These securities are bought with the intention of managing a fund or money. Meanwhile, on the sell side, investment banks, corporations, and advisory firms create and promote different securities. These securities are sold or traded to the public.

Sell side trading plays a role in the decisions that are made by the buy side of the markets. Entities in the buy side of the market subsequently make investment decisions based on the information gathered by the sell side.

The Difference between Primary

As executive vice president of Massachusetts-based financial services firm Publicis Sapient, David Donovan (formerly of Fidelity Investments) focuses largely on investment bank relationship management and portfolio management. David Donovan ran Publicis Sapient’s capital markets portfolio after leaving Fidelity Investments.

Capital markets are the part of the financial system that shifts savings and investments from capital suppliers to entities that need capital. These markets are divided into two categories: primary and secondary. While both markets link investors and savers (along with boosting economic growth and facilitating securities trading), they are very different parts of the capital markets.

Primary markets consist of new securities that are being traded for the first time. These securities are created via an initial public offering (IPO). When they are bought and sold by investors, the transaction is not between different investors, but rather between a bank and an investor. Creating and selling these securities generates capital for the company that goes public. The government or businesses may also issue bonds on the primary market.

Most people think of the secondary markets when they think of Wall Street or the stock market. NASDAQ and S&P 500 are some other major secondary market indices. On the secondary market, securities are bought and sold between different investors. Smaller investors are often not allowed to participate in IPOs, so they are only active in the secondary market.

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The Benefits of Embedded Finance

A financial leader based in Massachusetts, David Donovan serves as the executive vice president of Publicis Sapient. Since joining the company after leading Fidelity Investments in 2005, he has been responsible for managing financial services portfolios for the business. Active in the professional community, David Donovan, formerly of Fidelity, often writes about different topics related to the field, such as embedded finance.

Also known as embedded banking, embedded finance involves joining a non-financial service with traditional financial services via seamless integration. For example, a customer paying directly into a ride-share company’s application instead of handing a payment card to the driver or messing with cash is using embedded finance.

End users benefit from embedded finance because it streamlines their experience with a business. Embedded finance does this by removing a step in the consumer buying process. The process leads to faster transactions and increases convenience for consumers. Embedded finance also allows for a more tailored experience based on each customer’s needs. Since the customer’s checkout process is streamlined with embedded finance, they are more likely to be repeat buyers in the future.

Embedded finance doesn’t only benefit end users. It also makes digital platforms more attractive to customers thanks to the streamlined experience. This improves customer retention and acquisition. It also increases revenue for a business by increasing its average order value and customer lifetime value.