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Technology Stocks : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Scrapps who wrote (8172)	3/16/2000 4:02:00 PM
From: Elroy	Read Replies (3) \| Respond to of 9236

Knowing what others do not, gives one the advantage to buy low sell high. Based on that simplistic argument, I say the analysts have an ability to profit at the expense of the small investor. True, analysts have more insight, and sometimes insider knowledge. If anyone, they will give that info to their external institutional clients (hedge funds and mutual funds) in exchange for order flow through their brokerage's trading operations. One of the analyst's pay incentives is trading flow in the stocks that the analyst covers. Equity analysts do not give inside information to some individual (i.e., a trader) in their own brokerage firm to help their brokerage make money trading stocks. There is nothing in the analyst's incentive package which is designed to help the brokerage's trader make money trading a given stock. If the analyst did give the trader non-public info and that was discovered, the analyst and trader would be fired and the brokerage firm would get a ton of bad publicity dumped on them. I have never heard of this practice and it would be on the front of the Wall Street Journal if it ever occurred and was discovered. I think when someone says "they are manipulating the price" the poster thinks there is some huge conspiracy between the equity research department, trading department and corporate finance department of Bear, Webber, Sachs, Lynch and Barney (or whichever brokerage). All these departments in one firm operate and are incented separately, and this type of manipulation for total corporate profit does not occur. My two cents, nothing to do with AWRE. Elroy