A demand for independent securities research came about because of both real and imagined problems, regarding work of securities analysts.
One result: A 2003 settlement imposed by New York State Attorney General Eliot Spitzer to provide for independent stock evaluation. It forced major securities brokerages to spend $460 million in such research for its non-institutional clients.
The money was duly spent. There is doubt, however, about how much such securities research was used. Undoubtedly, a modicum of independence was achieved. But few investors made practical use of that source of information.
I guess it was a political success at the time the settlement was imposed. But that appears to have been the sum of it.
No comments:
Post a Comment