The listed corporation deals with three main parties in the equity markets: sell-side analysts, investors, and financial journalists, as shown in Figure 4.1.
Figure 4.1 The company-equity market interface
Analysts can be divided into three types:
Sell-side analysts have been an important feature of the U.S. equity markets since the 1920s, although they were not common in the United Kingdom’s markets till the 1960s (Golding, 2003). They usually work for investment banks. Their job is to publish research on companies in order to encourage the trading of its stock. They are remunerated according to the ...