Introduction of Mandatory Report Ratios for Small and Medium-Sized Stocks by Investment Firms… Disclosure of Analysts Who Accurately Predicted Stock Prices
4 Articles
4 Articles
Going forward, research centers at major securities firms must publish a certain proportion of reports covering lower-ranked KOSDAQ stocks. This measure reflects criticism that small and medium-sized stocks have been shunned by investors due to a "report gap." According to announcements by the Financial Services Commission and the Financial Supervisory Service on the 1st, comprehensive financial investment companies (CFAs) will all
(Seoul = Yonhap News) Reporter Bae Young-kyung = With the introduction of a minimum mandatory ratio of small and medium-sized stocks that research centers of comprehensive financial investment firms must cover, the focus on large-cap stocks in securities firm reports...
The financial authorities enhanced the independence of analysis by requiring nine major securities firms to allocate at least 25% of their total reports to small and medium-sized stocks and allowing analysts to write anonymous reports. They also prepared a system reform plan to strengthen research credibility and transparency by extending the mandatory analysis period for IPO companies to three years.
Financial authorities have decided to introduce a minimum small-cap coverage ratio to address the practice of major domestic securities firms' research reports being excessively skewed toward 'large-cap stocks'.
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