Forum Archive Index - January 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

 

Anna,

 

In my opinion, brokers hope that their mentioned stocks will have a priority in the minds of investors.

 

In the past, some brokers may have felt that they had an obligation to their client companies and hence recommended them.

 

Some of these recommendations were ' shockers' and yet investors fell for them. 

 

The laws of libel prevent me from mentioning a few examples, but experienced investors will know some!

 

I am quite happy with the procedure but would insist that the 'Herald' discloses which companies were the brokers' clients.

 

The investor can then decide what effect it will have on their selections.

 

Brokers' reports already mention when they have a recommended company as a client and this should be applied here as well.

 

We are concerned with a strong reduction in bias when these brokers are mentioned. I think that they have nothing to hide and would welcome this!

 

I for one, do not take much notice of these recommendations, but some do, and they at least ought to be supplied with the tools to make a decision! 

 

To most of us it is light hearted stuff, but to those who only have a few hard earned dollars to spare, it could be important!

 

Gerry