In stock recommendation reports, the stock analyst has to declare his shareholding in the recommended stocks. When he declares that he holds certain stocks, do you then treat his stock recommendations with some suspicion, wondering whether he is recommending certain stocks so that the rest of the public would buy and lead to a rise in the stocks that he holds? And if 2 stock analysts (Analysts A & B) both recommend the same stock but Analyst A doesn't hold any shares in the stock and Analyst B does, who would you believe in more? Most people would believe in Analyst A more, because he has no vested interest in his recommendations. However, should that be the case?

Analyst B puts his money where his mouth is. If the stock drops, at least he suffers a loss together with his clients. And when he is prepared to put his money ...