Pull together the totality of a broker’s knowledge about a stock – broker research, recent corporate events, the morning call, the economic briefing, and knowledge of market movements
Are measurable in terms of effectiveness
Are tailored to individual client portfolios, rather than blasted out to everyone, giving them unique value
Can be actioned immediately
Are only paid for if they are effective
Remove significant costs in the investor’s stock-picking process

It is perhaps performance-based payment that makes trade ideas so popular in a difficult market such as the one we have now.

How does a Firm pay for an Equity Research operation when all of the subsidies are gone, and the function does not generate any direct Revenue to be considered a profit line in any Firm? What was once an honorable and desired profession (Equity Research Analyst) is rapidly being thrown into the dust-bin of Wall Street history. Who in their right mind would want to be an Equity Research Analyst, or, advise someone that this is a good career direction in this environment?

The major Sell-side IB’s have a big problem on their hands. As stated in the Blog article commissions are heading down very rapidly and the funding sources from Retail or Investment Banking are probably gone forever. I would not at all be surprised if all of the Equity Research departments are “spun off” to be standalone operations and made to “make a profit” on their own merit and product.

Amazing, just amazing IMHO!