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So Facebook expressed caution about revenue growth, and the banks downgraded their earnings forecast? I really don't see what the story is here! In fact the W
by tomgallard 14y ago
So Facebook expressed caution about revenue growth, and the banks downgraded their earnings forecast?
I really don't see what the story is here!
In fact the WSJ suggests that if they had released these revised earnings forecasts publicly, they'd have been breaking SEC regulations:
Underwriters are barred by Securities and Exchange Commission rules from publicly issuing research on the IPOs they are involved in. But analysts are allowed to discuss their views with clients during these so-called road shows.
- deleted 14y ago[deleted]
- malandrew 14y agoAFAIK, in the US, this doesn't prevent the Broker Dealer arms of the bank from publishing reports for an IPO underwritten by the Investment Banking arm of the bank. I know it doesn't in Brazil. There should be a Chinese Wall between the IB and the Broker Dealer and no meeting should happen between analysts from both arms without the presence of compliance. However, this is often not observed and difficult to enforce since members of both banking arms are often friends and socialize together.