Definition: Institutional equity sales are a special division of a brokerage firm that deals with institutional investors.
What Does Institutional Equity Sales Mean?
What is the definition of institutional equity sales?Institutional equity sales are a key division of a brokerage firm or an investment bank because it is responsible for the sale of investment ideas that can bring million to the company. More than presenting an investment idea to a prospect client, working in the institutional equity sales requires an ability to cross-sell the bank’s products and understand what an institutional investor may need.
In addition, strategic analysis plays an important role because the division requires the ability to analyze the market and develop investment ideas based on the market trends. Finally, quantitative skills are required to be able to assess the client prospect revenues as well as the commission for the bank.
Let’s look at an example.
Valerie is a highly experienced sales professional, working in the international equity sales of an investment bank. Her primary task is to achieve growth through unique investment ideas that can capture investor value. She possesses strong analytical skills; hence, she is able to analyze the market and deliver research and trading ideas that can meet an investor’s needs.
One of the things she most loves is the daily interaction with her institutional investor clients. Valerie is also responsible for bringing together institutional investors and the firm’s that the investment bank represents, thereby meeting with people on a daily basis, seeking to drive growth for the bank.
In addition, she attends IPO Roadshows and equity research events, seeking to bring institutional investors into contact with new, promising firms that can deliver significant growth over the next years. She presents a detailed research report to the investor, and she adds her own, unbiased opinion about the investment.
Finally, she often attends investment conferences that her investment bank organizes, seeking to collect more information on prospect clients.
Define Institutional Equity Sales: IES means a department in an investment bank that services institutions.