Investment Banking vs. Sales and Trading vs. Equity Research

Investment banking, sales and trading, and equity research all sit within the broader world of finance, but the day-to-day jobs are fundamentally different. This guide compares what junior professionals actually do, the hours and working styles they face, the skills they build, and the exit paths each role can open—so you can target the career that fits you rather than choosing based on prestige alone.

Author: Michael Harris Updated 9 min read

What Each Division Actually Does

Investment banking advises companies, financial sponsors, and other institutions on transactions and financing. Bankers help clients acquire or sell businesses, raise debt or equity, and evaluate strategic alternatives. Junior bankers spend much of their time building financial models, preparing presentations, coordinating due diligence, and managing the many details required to execute a deal.

Sales and trading, commonly called S&T, helps institutional clients buy and sell financial products such as stocks, bonds, currencies, commodities, and derivatives. Salespeople communicate with clients, share market information, and identify potential trades. Traders price risk, execute transactions, and manage the bank’s resulting positions within defined limits. Some roles are highly quantitative; others depend more on relationships and market judgment.

Equity research analysts study publicly traded companies and publish analysis for institutional investors. A research team usually covers a specific sector, such as software, healthcare, or industrials. Junior team members update earnings models, analyze company filings, speak with management and investors, and contribute to reports explaining how new information may affect a company’s outlook and valuation.

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