Articles

How Big Data Can Use Language To Find The Hidden Reason To Sell A Stock

It’s no secret on Wall Street that a “sell” recommendation in sell-side research reports is exceedingly rare, and it can’t be chalked up to today’s bull market recently surpassing its ninth birthday.

According to FactSet data, only 6% of analyst recommendations on S&P 500 companies are “sell” ratings or the equivalent, lending credence to the notion that conflicts of interest persist despite reform efforts to make recommendations more objective in nature. Put simply, negative recommendations can place an analyst in the virtual penalty box when it comes to getting access to companies, and the effects are clear in a business where access is king.

Source: forbes.com
Author: Jack Kokko

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