NYSE and FINRA rules now prohibit analysts from offering a favorable research rating or specific price target to induce investment banking business from companies.
The rule changes also impose “quiet periods” that bar a firm that is acting as manager or co-manager of a securities offering from issuing a report on a company within 40 days after an initial public offering if annual revenues are over $1 billion, or within 10 days after a secondary offering for an inactively traded company.
According to the 2012 Jump Start Act as interpreted by most Wall Street firms, if a company has under $1 billion in revenue the quiet period is 25 days. Read more
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