Andrew Main 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.
Click on the link above for the press release. A copy of the study, entitled “How does the private and public release of analyst recommendations affect the market?” is available under Featured Article.