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To: Elroy who wrote (130193)	7/16/2003 12:27:10 PM
From: Jon Koplik	Read Replies (2) \| Respond to of 152472

Re : thinking "research" could not be used in a manner to benefit a Wall Street firm (in a way that is either illegal or distasteful or both) -- It is common knowledge that one very big reason that Fidelity Magellen Fund and Michael Steinhardt's hedge fund (back when it existed) did well was : THEY got the "first call" on new "research" (because they were such large customers). The "first call" being something like this : "XYZ Securities Corp. has just upgraded their opinion on (for example) oil stocks this morning. Wanna buy some right now, before we call the other 85 institutional investors who are also clients of XYZ Securities Corp. ?" So, someone gets to "front run" the rest of the morons out there. And, someone gets to decide who is given the opportunity to "front run" the rest of the morons out there. Even more insidious than deciding Michael Steinhardt gets the "first call" were stories I used to hear that so and so (within XYZ Securities Corp.) is incredibly wealthy because he got the "first call" and traded his of her own account accordingly. Yes, I know that all employees of securities firms must have duplicate confirmation slips sent to their firm's compliance department. But, if you have anyone "on the outside" (your college roommate, for example) with whom you have "absolute trust," the rules are useless. Jon.