What is sales in investment banking?

• A. The activity of selling securities to individuals and companies profiting off a bid/ask spread.
• B. Underwriting new issues for a company.
• C. Trading securities for capital gains.
• D. Providing research for clients.

Answer: (A)

Sales in investment banking is the client-facing function that markets and sells securities and investment products to clients, coordinating with traders to execute those transactions. The goal is to understand client needs, present suitable opportunities, and get orders filled, with revenue coming from the fees or spreads earned when trades are completed. So the activity is about distributing securities to individuals and institutions and profiting from the transaction flow, rather than the other activities like underwriting new issues (origination), trading for capital gains (trading desk), or producing research (research). For example, a salesperson would pitch a new bond issue to a fund, work with the traders to price and execute the sale, and earn a commission or a portion of the spread.