The Conflict of Interest Game



Get Learn Investing Secrets on mps-investing.com. The Conflict of Interest Game topic will increase your understanding on Learn Investing Secrets. We at mps-investing.com only provide news, articles, information in Learn Investing Secrets. Learn Investing Secrets at mps-investing.com provides the most up to date news and articles. If you have questions please do not hesitate to contact us.

Summary:

Disgruntled investors are going after Wall Street once again, this time accusing one of investment bank Morgan-Stanley's high-tech mutual funds of making biased stock picks.

Recent lawsuits allege the Morgan Stanley Technology fund was influenced to buy and hold stocks of companies that delivered huge investment banking fees - or could potentially bring big business - to the investment bank.

According to the lawsuits, the Morgan Stanley fund followed the biased recommendations of the firm's analysts - decisions that have cost shareholders millions of dollars since the portfolio's October 2000 inception.

The fund lost 48 percent in 2001 and was down another 50 percent during the first nine months of 2002.


Article:

Disgruntled investors are going hinder Wall Street once again, this time information one of investment bank Morgan-Stanley's high-tech mutual funds of making misrepresented stock picks.

Recent lawsuits testify the Morgan Stanley Technology fund was influenced to buy and hold stocks of companies that delivered huge investment rolling fees - or could potentially regurgitate big overacting - to the investment bank.

According to the lawsuits, the Morgan Stanley fund followed the tendentious recommendations of the firm's analysts - decisions that have cost shareholders millions of dollars since the portfolio's October 2000 inception.

The fund lost 48 percent in 2001 and was down other 50 percent during the first nine months of 2002. While Morgan Stanley strongly denied the allegations, I fail to see how the management of the fund is somehow distinct from the other divisions of Morgan Stanley. Ultimately, they all work for the same boss.

The suits further tax that the tech fund failed to disclose that the firm had investment pull-up ties with a number of companies whose stocks were part of the portfolio. They also failed to reveal that those links could answer to the fund's buy or sell calls.

Why emphasize all this up? For one thing, it is interesting to note that Morgan Stanley offered four of these types of funds in October 2000. Just all about the time when we sold all of our positions (Oct. 13, 2000) and it became clear, at least to those of us who were tracking long-term trends, that a major trend trade off had taken place.

More recently in the news it's been Merrill Lynch who had a questionable deal involving transactions with failed energy trader Enron. Of course, the financial services industry regulates itself so well, that an $80 million payment to the SEC is sufficient to wrap up this case without admitting or denying wrongdoing.

What's the moral of this story? While it is impossible to predict these accounted as conflict of interest schemes, it is definitely possible to follow a disciplined suborn and be on the “right” side of the market so you can let go by jumping here a sinking ship.



Real Vampires & Witchcraft Practitioners. - Brand New eBook To Feed The Crazy Revival Of Interest For Vampirism & Witchcraft - Great Conversion Rate!
Profit Monster -Extreme Sales Machine. - The first video b2b site ever with 1 in 5 conversions, interesting keywords.


Article Index: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27


More Articles:


1. Where to Invest Your Money By Jeff Lakie
Summary: If you are new to investing, or even if you've been playing the market for a while, investment options can be overwhelming. For example, from 1926 to 2004, the stock market had an average annual gain of 10.4%, compared with only 5.4% for bonds and even less for other forms of investing.That said, stocks may not be such a good option for short-term investing. Article: If you are new to investing, or even if you've been playing the marke…

2. The Dreaded Direct Question By Rick Hoogendoorn
Summary: Are you getting new clients this way?'The room was beginning the spin.'Can I have some wa -wa?' I asked woozily as I crumbled to the floor.Sometimes we get so caught up in the process of doing things, like optimizing websites for search engines, we lose sight of what standard of measurement we should be using to determine how we're doing. So, if you think about your financial goals, and then think about how you are doing, the same questi…

3. Exciting New Commodity ETFs May Come Up Short By Dave Fry
Summary: If retail investors, like any typical commodity investor, are unable to short these commodity ETFs, then investors are deprived of the commodity diversification benefit'they can only be long or out.Over the past two years, we've been discussing the difficulty retail investors have faced when trying to short most ETFs beneath the top half dozen or so issues. It's been a serious ETF short-coming that needs resolution especially if these ne…

4. What If You Absolutely Positively Could Not Lose - Would You Play the Stock Market? By Mike Makler
Summary: These annuities allow you to mirror the gains of popular stock market indices like the S&P 500 or the Dow Jones Industrial Average while not loosing any of your investment capital.In simple terms if the stock market goes up your Annuity also goes up but if the stock market goes down your Annuity does not loose any value. It doesn't matter if your score card has a Negative 1%, 10% or 99% you will not loose one cent of your $10,0…