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ARE BROKERS ‘TIPPING’ CLIENTS ON ANALYST RECOMMENDATIONS?

TaBB Forum reports on a CMCRC study that reveals abnormal trading volumes prior to public release of analyst recommendations on associated stocks, suggesting evidence of ‘tipping’ to privileged clients by some brokers. The study examines broker trading volumes before and after analyst recommendations are made public. Data showed spikes in trading volume by recommending broker before the public release of the analyst reports.
 
Source: TABB Forum
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