Stock analysts generally issue more sell recommendations than buy recommendations.

Question

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It is generally observed that analyst recommendations are often more optimistic than warranted by facts. Sell recommendations tend to be exceptions rather than the norm. Part of the explanation may be that most analysts work for firms that also have investment banking relationships with companies they follow. Negative recommendations may cause them to take their investment banking business to a rival firm.

Stock Analysts Generally Issue More Sell Recommendations Than Buy Recommendations