Monday, October 17, 2005

Paid-for Research

The SEC is relaxing a previous position regarding paid-for research. The decision is problematic. On one hand paid -for research has a certain promotional aspect to it. On the other new companies are constantly desparate to attract analyst followings. But if share volumes are low analyst followings are near impossible to attract.
The proof in the pudding will be if the research is sufficiently branded as paid-for and will negative reports or less than glowing reports also have the same prominence.