Unbundling: No More Analysts at a Discount
Posted: 28 Jun 2017
Date Written: January 15, 1975
An efficient market is thought to be desirable by many legislators, regulators, and academicians. At the same time, they seem adamant that the investment industry unbundle. These two positions are at odds unless it is proposed that investment research be subsidized. Regulators who insist on efficient markets should recognize the dangerous consequences of also insisting on negotiable commission rates.
Keywords: commissions, efficient markets, unbundling, fundamental research
JEL Classification: G10, G11, G12, G14
Suggested Citation: Suggested Citation