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Article: Researchers from University of Texas publish findings in finance.
- Article from:
- Investment Weekly News
- Article date:
- November 7, 2009
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According to a study from the United States, "This paper examines trading volume for Nasdaq market makers around analyst recommendation changes issued by an analyst at the same firm."
"Using Nasdaq Post-Data, we find a disproportionate increase in market making volume associated with the firm's recommendation changes and evidence of elevated sell volume at the recommending analyst's firm in the 2 days preceding a downgrade. The implications are that the information source matters in determining the placement of trades and that the issuing analyst's firm appears to be rewarded for prereleasing information through increased volume," wrote J.L. Juergens and ...