Nasdaq in plea over analyst coverage.

Financial News, October, 2002

The Nasdaq stock market is pressing the Securities and Exchange Commission to ensure that analyst coverage of small companies is not damaged by an imminent shake-up of Wall Street research functions.The number two US stock market is alarmed at the implications for small companies - which disproportionately list on Nasdaq - of declining analyst coverage, a trend likely to be accelerated by a restructuring of the field amid accusations of bias and conflicts of interest.

Nasdaq's concerns about analyst coverage come as some brokerage firms are cutting back sharply on their market-making functions in small stocks because of a decline in spreads - the difference between the buy and sell price of shares - and trading volumes.

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