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But don't they have a conflict of interest since their "estimates" affects the same market they are investing in?
by pooya13 8y ago
But don't they have a conflict of interest since their "estimates" affects the same market they are investing in?
- sz4kerto 8y 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 8y 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.