Chamber Applauds New Investment Research Effort

WASHINGTON, D.C.—The United States Chamber of Commerce welcomed news that NASDAQ and Reuters had reached an agreement to provide independent research and analysis of smaller firms listed on the stock exchange.

"Good information is crucial for a robust market—the availability of independent research can enhance smaller firms' ability to attract the capital needed to grow their businesses and create jobs," said Thomas Donohue, Chamber President and CEO. "More than one-third of all public companies have no one researching or analyzing their operations for potential investors."

NASDAQ and Reuters have announced plans to offer analyst research reports on smaller firms through the Independent Research Network.

Actions by regulators in state and federal agencies against information sharing between securities firms have heightened calls for independent research. One of the unintended consequences of this atmosphere, according to the Chamber, is that some smaller firms have lost research coverage.

Nearly half of all publicly held companies have two or fewer analysts, according to published data. Since January 2002, 691 companies have lost analyst coverage entirely.

"Without independent analyst coverage, smaller public firms may not achieve the trading volume needed to attract both individual and institutional investors," said Donohue.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector, and region.

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