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Enron and Stock Analyst Objectivity (CRS Report for Congress)

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Release Date Revised Jan. 29, 2003
Report Number RL31348
Report Type Report
Authors Gary W. Shorter, Government and Finance Division
Source Agency Congressional Research Service
Older Revisions
  • Premium   Jan. 6, 2003 (43 pages, $24.95) add
Summary:

Stock analysts provide research on companies and make recommendations on their stocks. When analysts are employed by brokerage firms and provide information for the firms' retail and institutional clients, they are called sell-side analysts. Analysts who work specifically for institutional investors like mutual and pension funds are known as buy-side analysts. Because of their widespread presence in the national media, sell-side analysts' recommendations have become part of the public domain and they can have significant influence on stock prices. This report examines the performance of the stock analysts in the Enron case.