• SEC Releases New Rules to Address Analyst Conflicts of Interest
  • July 2, 2003 | Author: Howard E. Berkenblit
  • Law Firm: Sullivan & Worcester LLP - Boston Office
  • A series of questionable practices and conflicts of interest involving securities research analysts and their reports have come to light in recent months, most notably in connection with the Enron debacle. Such conflicts can lead to greater profits for the analysts and their firms at the expense of investors generally. Even while Enron announced serious accounting errors and massive losses, and its stock price plunged, most analysts following the company gave it optimistic ratings, raising the appearance of significant conflicts.