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25/02/16
22:16
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Originally posted by OllieB
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Sure - technically ECM and research are separate, but in my experience the smaller the broker the more the blur. Plus there are quite a few smaller brokers who make more money off ECM deals than commissions. A value add for a smaller broker (to help win/keep the deal/s) is that they will cover the stock when the big guys won't. There is a clear conflict of interest.
I don't think it is a coincidence when as is often the case:
- a bank IPOs a company -> positive analyst initiation with a BUY
- broker 'house' stocks' (ones the broker does most of the raisings for) -> positive analyst research and often a BUY
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Explain what you mean, because it's absolute jibberish when reading this now, I'd love TH throw you in front of the team, they'd eat you alive!