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To: Scrapps who wrote (8190)3/17/2000 3:42:00 AM
From: Elroy  Read Replies (1) | Respond to of 9236
 
Let me ask you...do they only make money when their clients do? Enough said.

Don't know what you're talking about. Brokerage house's clients (mutual funds) can lose a ton of money, and the brokers will do fine because they earn money on volumes, not share price directions.

As for opening the closed door meetings, that will have to come from the companies, not from the brokers. The brokers have nothing to gain by opening their access to corporate officers. And what do corporate officers have to gain by refusing to have one to one meetings with brokerage house analysts? In order for information flow to individual investors to improve, there has to be some benefit for someone other than the individual investor.

From the corporation or brokerage house's perspective, what is the benefit?

Remember, in most cases an equity research analyst is just a guy like you and me that has the ability to get the CFO/CEO on the phone, and clarify the meaning of a company's public statement. The CFO/CEO doesn't tell the analyst the order level for the month or the number of new products which are expected to be announced over the next two weeks, or the amount behind plan that currently exists. Most don't get any special "inside" information, they just get a bit more detail than we do.