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To: yojim who wrote (33534)2/5/1998 5:38:00 PM
From: Steve Morytko  Respond to of 61433
 
To All: Why does a brokerage "begin coverage" of a stock?

Many of the posters here seem very knowledgeable and I figured the thread needs a distraction from the soap opera so I thought you might be able to help me out on this one.

I'm curious as to what motivates a brokerage to "begin coverage" of a stock? Is it because they've taken a position - long or short - in that stock? Are they now a market maker? Did they hire an analyst that thinks they know something about the company? Do companies offer "incentives" for an analyst to begin coverage? Other reasons?

Why don't we ever hear about brokerages "ending" coverage of XYX Corp.? Also, is there a good (free) place to find out which brokerages/analysts cover a company and which ones make a market in it?

I know I'm asking a lot. Please don't hesitate to refer me to a URL or book.

Wouldn't it be nice if you could find some of this information in the IR area of a companies "home page". I haven't seen many good IR pages but this is the best of those I have seen (please share your finds).

media.corporate-ir.net