The role of an equity sales person is broad based but revolves around building and maintaining relationships with 20-40 clients. The sales person will talk daily to his/her clients commenting on news flow and ‘selling’ ideas to them. The corporate reporting calendar will provide much of the news flow but economic and political events will also have a bearing on the markets and the advice given. The sales team will typically call on the research department for commentary on this news flow but the sales person will also be expected to have their own opinions and analysis.
Many of the ideas (Buy or Sell recommendations) are likely to be generated from the research team. The firm’s analysts will typically have published a range of reports on any given day and the role of the sales person will be to communicate the contents of these reports and the ‘ideas’ to the clients. In addition the sales person may arrange for clients to meet analysts or corporate management and will organise road shows for them.
This role is especially important where the bank is attempting to place a primary (IPO) or secondary (rights issue) offerings in the market or a large line of stock from another client. In this instance there will be considerable pressure to place the stock within a very short period of time (sometimes hours) and the credibility and persuasiveness of the sales person will be key. Here again the sales team may arrange road shows for corporate management and may chaperone them on the trip.
Typically the bank is paid for these services via commission on stock traded with the client. Here the sales person acts as a middle man between the client and trader but will not normally execute the trade. This commission may not be directly related to an idea on any given day but the quality of the overall service (sales, research, execution, corporate access etc) will determine the overall commission payments made over a period of time and trades will be directed based on that service. As a result the sales person is key in maintaining the relationship and keeping the client up to date. The objective should be to provide the client with a regular flow of money making ideas. Whilst this can be a very rewarding and enjoyable role some may find the 'phone work repetitive and the opportunity for decision making can be limited.