Rule 139 Issuing Research Reports

A broker dealer who is participating in a distribution may continue to issue research reports relating to the issuer if the issuer is a large reporting company under The Securities and Exchange of 1934 and;

  • The company is followed by analysts
  • The information, opinion, or recommendation appears in a regularly published report.
  • Information, opinions, or recommendations that are at least as favorable as the current report must have been contained in the previous report

If the broker dealer is not currently covering the company, the report is not con­sidered to be issued with sufficient regularity. Any projections relating to the company’s earnings may not extend past the current fiscal year. Broker dealers may issue reports for smaller issuers if the report contains information relating to a substantial number of issuers in the same industry as the issuer, or a list of securities currently recommended by the broker dealer, so long as the information relating to the registrant is not displayed more prominently than other information in the same report. 

THE SECURITIES EXCHANGE ACT OF 1934

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