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I wrote another paper comparing how large investors and small investors react to analysts' recommendations.
"We are trying to front-run recs," it said, referring to trading ahead of analysts' recommendations.
And this in an industry where fewer than one per cent of analysts' recommendations are "sell".
Indeed, at the height of the boom, fewer than 1percentt of analysts' recommendations were "sells".
Because analysts' recommendations helped generate trades and commissions, research departments paid for themselves.
The sales representatives communicated the analysts' recommendations to clients and the clients' decisions to the analysts.
Similar(28)
Connections improve male analysts' recommendation impact by about 1.2percentt, but not at all for female analysts.
Here are some things you can do in order to sleep better and position yourself against an inevitable setback: First take a deep breath and jettison your speculative stocks, regardless of how many analysts' recommendation lists they top.
But a number of other companies benefited from analyst recommendations.
Two documents state that the surveys allow for front-running analyst recommendations.
Meggitt's shares have had a good run this year up until now, lifted by analyst recommendations.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com