The book highlights the major risks that securities analysts (and other securities professionals) face. The various laws, rules and regulations that securities analysts are subject to are broadly split into three categories: research-specific rules and regulations; market-wide laws; and society-wide laws and customs. The risks that arise out of these various levels of rules and regulations, insofar as research analysts and other securities professionals are concerned, include conflicts of interest, fair distribution/front-running of research, insider trading, spreading of rumours, not highlighting investment risks (including corporate governance issues), as well as defamation and copyright issues. We see that if an analyst puts a company in play, a regulator would instantly assume that the analyst is trading on inside information (especially if the information turns out to be true) or is spreading a rumour (especially if it turns out to be false). However, we also see that there is a third option that the analyst might just have come to his or her conclusion through some good research based on verifiable facts and reasonable assumptions. Definitions of research from around the world are examined. After all, research is generally defined by its content, not by the author's job description. As such, non-Research securities professionals such as brokers and marketers of research as well as investors, journalists and even bloggers and twitterers need to understand what constitutes research so that they don't fall into the regulators' purview. As regards the risks to investment views that analysts need to highlight to their investors, the book not only examines economic and financial risks but also examines corporate governance issues such as executive compensation, equal treatment of shareholders, related-party transactions and risk management. To demonstrate the risks that analysts, securities professionals and investors face, the book draws on many cases and examples from around the world, including many from the global financial crisis of 2007-2009. From these cases we see how penalties for those involved in the securities markets have become more serious over the years. They range from fines to imprisonment, and even to execution in some markets. To give a light-hearted angle, many of these cases are accompanied by Alex cartoons.

The book highlights the major risks that securities analysts (andother securities professionals) face. The various laws, rules andregulations that securities analysts are subject to are broadlysplit into three categories: research-specific rules andregulations; market-wide laws; and society-wide laws and customs.The risks that arise out of these various levels of rules andregulations, insofar as research analysts and other securitiesprofessionals are concerned, include conflicts of interest, fairdistribution/front-running of research, insider trading, spreadingof rumours, not highlighting investment risks (including corporategovernance issues), as well as defamation and copyright issues.We see that if an analyst puts a company in play, a regulatorwould instantly assume that the analyst is trading on insideinformation (especially if the information turns out to be true) oris spreading a rumour (especially if it turns out to be false).However, we also see that there is a third option - that theanalyst might just have come to his or her conclusion through somegood research based on verifiable facts and reasonableassumptions.Definitions of research from around the world are examined.After all, research is generally defined by its content, not by theauthor's job description. As such, non-Research securitiesprofessionals such as brokers and marketers of research as well asinvestors, journalists and even bloggers and twitterers need tounderstand what constitutes "research" so that theydon't fall into the regulators' purview.As regards the risks to investment views that analysts need tohighlight to their investors, the book not only examines economicand financial risks but also examines corporate governance issuessuch as executive compensation, equal treatment of shareholdersrelated-party transactions and risk management.To demonstrate the risks that analysts, securities professionalsand investors face, the book draws on many cases and examples fromaround the world, including many from the global financial crisisof 2007-2009. From these cases we see how penalties for thoseinvolved in the securities markets have become more serious overthe years. They range from fines to imprisonment, and even toexecution in some markets. To give a light-hearted angle, many ofthese cases are accompanied by "Alex" cartoons.

ForewordPrefaceAcknowledgmentsAbbreviations Used in This BookChapter 1: Principles of ResearchChapter 2: Reasonable Basis, Valuations and RiskChapter 3: Independence of Research and Confl icts ofInterestChapter 4: Non-research: E-mails, Blogs and InternalCommunicationsChapter 5: General Writing, Editing and PublishingConsiderationsIndex