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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dominick who wrote (7375)3/12/2000 11:07:00 PM
From: LPS5  Respond to of 18137
 
Dom,

It was great meeting you too. I understand what you mean now -

In short, I'd say this: aside from the apparent conflict of interest in an example such as you mentioned, there is a positive spin to put on it as well. In maintaining the compliance feature known as the "Chinese Wall" (of which one among many other hallmarks is the aforementioned "grey list"), the goal is to keep the trading department and the research departments separate, particularly where proprietary trading, principal investments, impending research releases, and investment banking-privileged information are concerned.

One hallmark of that departmental isolation, and a sign of successful Chinese Wall policies, include the behavior that you cited: that once in awhile, one division is effectively saying "buy," while another is saying "sell."

Some things on Wall Street look unethical, and some are unethical. The vast majority of behaviors are misunderstood - and yes, some are well within the pale of law and regulation, but bother some people all the same.

LPS5



To: Dominick who wrote (7375)3/13/2000 7:42:00 AM
From: gaj  Respond to of 18137
 
just check EGGS last summer...that's the one i was thinking of specifically, but there are tons of examples of it.

and the buy recs on the IPOs? what a joke. i was even told as much by someone at one of the companies...

(i'm not debating whether the companies are really *worth* that amount, just the fact that when the quiet period is over, the underwriter will almost ALWAYS come out with a super duper recommendation of the IPO).


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