<p>This might be a silly question, but how does it work. In the case of GS let's say, which division trades with the firm's own money and which division trades on behalf of clients. (Securities, AM)</p>
<p>And what do PWM people do?</p>
<p>Kind of a tricky question. Securities as a division generally houses both sell-side desks and prop trading. Sell-side desks primarily trade on the behalf of clients, but they also risk the firm’s capital and can take proprietary positions. Prop traders obviously just risk the firm’s capital, though these divisions have largely been scaled down. </p>
<p>Asset management and PWM are both on the behalf of clients.</p>
<p>So that means AM and PWM trade too, but on behalf of clients?
I’m still kinda confused though.</p>
<p>PWM is by definition a client-driven business. Asset Management is generally client-driven as well, although there may be prop trading desks interspersed. Most prop trading desks are housed within the Securities division of a bank. In GS, for example, there’s a Principal Strategies group on the Equities side and a Special Situations Group on the fixed income side, which I believe are both prop desks.</p>