More Firms Are Paying Directly for Research
From Bloomberg News
More institutional investors in the U.S. are opting to separate payments for equity research from trading commissions, a trend that might cut deeper into funding for Wall Street analysis of companies.
The ratio of firms paying directly for research rose to 35% in 2006 from 30% last year, a Greenwich Associates survey of 216 fund managers said Monday.
Institutional investors such as Fidelity Investments are refusing to pay trading commissions that had subsidized analysts’ reports for decades. Instead, they’re demanding lower commissions and paying for research separately.
