7. Other Governance mechanisms

Analysts always seem optimistic and recommend a much smaller proportion of stocks as a sell than a buy recommendation.

Analysts working at investment banks and investment bankers at the same bank are allowed to collude and influence each other when evaluating the same firm.

To make accurate recommendations, analysts need access to high quality information, and the best source of a firm’s information is the firm itself.

Financial analysts generally fall into two categories: buy-side analysts and sell-side analysts.

Investment banks are not involved in the process of issuing equity and debt securities.

IPOs tend to be underpriced in a short run, which attracts interested customers willing to take a chance on a new public firm.

Investment banks are not expected to offer quality companies to investors.

Sell-side analysts are part of the corporate monitoring system because their recommendations are made public.

Analysts may make slightly beatable earnings predictions to make companies happy.

Financial analysts do not make earnings predictions or give trading recommendations.

Investment banks do not play a role in assisting with regulatory filings and sales of securities.

Analysts working at investment banks may feel the need to give good ratings to the bank’s customers.

Financial analysts generally do not make earnings predictions or give trading recommendations.

Investment banks do not play a role in assisting with regulatory filings and sales of securities.

Financial analysts are not involved in the process of issuing equity and debt securities.

Investment banks always offer quality companies to investors.

Analysts at investment banks and investment bankers at the same bank are not allowed to collude and influence each other when evaluating the same firm.

Investment banks tend to overprice IPO offerings in a short run.

Financial analysts do not make earnings predictions or give trading recommendations.

Analysts may make slightly beatable earnings predictions to make companies happy.

Analysts working at investment banks and investment bankers at the same bank are not allowed to collude and influence each other when evaluating the same firm.

To make accurate recommendations, analysts do not need access to high-quality information, and the best source of a firm’s information is the firm itself.

Financial analysts always recommend a much smaller proportion of stocks as a sell than a buy recommendation.

Analysts working at investment banks and investment bankers at the same bank may feel the need to give good ratings to the bank’s customers.

Analysts at investment banks and investment bankers at the same bank are allowed to collude and influence each other when evaluating the same firm.

Financial analysts always make accurate and unbiased earnings predictions to ensure fairness in the market.

Investment banks are not involved in the road show, a marketing campaign to generate interest and market the issue.

Investment banks do not assist with regulatory filings and sales of securities.

IPOs tend to be overpriced in a short run, which deters interested customers from taking a chance on a new public firm.

Buy-side analysts are typically employed by brokerage and investment banks.

Analysts rely solely on public information to make earnings predictions and trading recommendations.

Investment banks are not expected to offer quality companies to investors.

Financial analysts are not part of the corporate monitoring system because their recommendations are made public.