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That's like asking what counts as art. There are some major museums who hire curators, who in turn buy art. Similarly, there are some large financial companies
by xapata 9y ago
That's like asking what counts as art. There are some major museums who hire curators, who in turn buy art. Similarly, there are some large financial companies that publish advice, who hire analysts. You "count" if people listen to you.
- pooya13 9y agoBut don't they have a conflict of interest since their "estimates" affects the same market they are investing in?
- sz4kerto 9y agoIn theory there's a strict separation between trading and research departments. (People on the trading floor cannot even enter the area where research sits.) This doesn't mean that there isn't some conflict of interest, but the industry and regulators are aware of it and at least in principle there are ways to mitigate it.
- xapata 9y agoAny conflict of interest could be seen as an illegal pump-and-dump scheme. It's a fuzzy line, but disclosing one's positions helps avoid the wrath of the SEC.