Who pays investor rating services like JP Morgan to upgrade or downgrade a particular stock or company?

Question

It would follow that whomever pays these rating's services has something to gain from their services as they are the customer of those services. If a stock is going to be upgraded or downgraded, people in the know can profit from that prior knowledge as it were. So how is the playing field levelled for that information? Can an individual like me find out that info at the same time as the major investor players?

Answer 1

They aren't paid to upgrade or downgrade. They are paid to report the grade.

It is offered as a service to their investors -- and is usually paid for indirectly through trading fees. In the past, research has always been bundled with other products. There are some investment funds (e.g., Fidelity) that have negotiated lower trading costs and pay for research directly.

Answer 2

I don't believe that anyone directly pays to have a company upgraded or downgraded by an investment bank's researchers. The researches do it as a free service for the bank's clients. The hope is that the research will make the clients want to do something (like buy or sell a stock) and that the client will most likely do the buying or selling through that investment bank. The banks make a small comission on all deals done by their clients.

I think if you become a client of one of those investment banks you can get access to their research. There are also other services (like on bloomberg) that collate a large number of different companies research but I've never used them so I have no specific advice for you on that part.

Answer 3

Oh that blows, KitKat. i've got have been given a spare room in case you pick it. with the aid of how, i will inform you the place your bailout funds went to. It went to human beings like my sister, who have been contacted with the aid of her economic enterprise and presented to have her very own loan renegotiated with very favorable expenditures. She stated definite of course, and now stands to save around $50,000 over the existence of the internal maximum loan. She became into instructed the economic enterprise had to try this for a definite form of house proprietors as circumstances for the bailout the economic enterprise gained. The weird and wonderful element is, her and her husband have the two had sturdy jobs for the duration of this recession. As such, they make their funds on time and function in no way been at risk of default or financial ruin. appears like the banks in simple terms desire to help people who they might nonetheless make funds off of. authentic tale.