Analysts eating their own cooking

Professional Adviser
clock

It does go on but will preventing analysts from owning what they recommend to others help matters?

Some months ago I had a weird en-counter with the then head of enforcement at the Securities and Exchange Commission (SEC), Richard Walker. I was visiting his boss, then SEC Chairman Arthur Levitt, to learn what I could about the agency's prosecution of a 15-year-old New Jersey boy named Jonathan Lebed. The kid had bought shares in small-cap companies and then posted messages on the internet telling other people they should buy them too. Every time he did this, he drove the stock price up and got out with a profit. The SEC had found this investment technique offensive and so set about p...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •