J.P. Morgaqn Case Essay Example | Topics and Well Written Essays - 750 words

J.P. Morgaqn Case - Essay ExampleCompanys fundamentals ar reflected through share price and in such a scenario, comments and recommendation of a well cognize analyst can severely affect the share price movement of a caller temporarily. Therefore, analysts love considerable amount of independence while making recommendation. However, analyst independence can be trim back by specific company policies. If a company and the client require the notifications of recommendations in advance, it would not supporter the analyst to make independent decisions. The analyst has to clearly justify his recommendations in such cases. Analysts independence is compromised when a buy recommendation is maintained even if stock price is falling. Analysts sometimes recommend investing in tech stocks and the broader stock market. These analysts do not lack independence while making recommendations (C. Y. Chen & P. F .Chen, 2009).Peter Houghtons memo proposes that the analysts should clearly give justif ications for their recommendations. The memo is designed as a globose policy that has to be followed by the bank. The memo reduces analysts independence to some extent. The memo contains an official order or proclamation which raises question about independence of analysts. The memo recapitulates a policy which has always been followed. The practices reflected in the memo are considered to be common in the industry. The policies are restated to guide analysts who are new to the company. So the company justifies itself by emphasizing that analyst only need to make changes supported by facts (Khurana, Pereira & Raman, 2003).The aspect of the large(p) market which is concerned with the promotion, sale and analysis of shares is known as the apportion side. Sell side analysts hunt on the undertakings that would enable the buy side to avail the financial products. The Wall Street considers various types of sell side individuals. It includes investment bankers who act as intermediaries between the public