The Conflicts Of Interest Between Securities Analysts And Investors

Securities Analysts are young professionals in the securities market. They have the information dominance and provide the specialized investment advisory services for the investors. Securities analysts play a key role in the information asymmetrical market, therefore securities analysts and investors may confront the conflicts of interest. Under this condition, the securities analysts may mislead investors in order to realize a certain purpose by releasing a deviant research paper, and this would do damage to investors'interest.This paper has reviewed the relevant literature in recent years, through to further investigation and analysis which the securities analyst conflict with investors' interests, have queried a common sense that securities analyst will be harmful to interests of investor, and have announced the existence of a securities analyst and interests conflict regulation mechanism, which is different to some extent with traditional understanding.This paper is developed in five parts. Part one is introduction; I introduced the research background, meaning, structure and its main content. Then, I made a survey to relevant research documents. Part two is the first chapter, which is an introduction to the securities analysts'definition and function. Next, I explained the differences between securities analysts and so-called "stock reviewer". In chapter two, I produced the possible reasons of the interests'conflict between the analysts and investors, and also explained the relaxation mechanism of the interests'conflict from several respects. This kind of interests conflict is serious by generally thought, but I don't think so. In chapter three, I analyzed the investors' interests may not be influenced by the interests'conflict between securities analysts and investors, then explained the reasons by using behavior finance theory. The last part is the chapter four, which is the conclusion and suggestions.