Without policy of insurance Most of the market of the OPI has been following just as for one decade and many of the practices that caused controversy are still effective. Traditionally in a OPI, a union of investment banks it places action between institutional investors and retail clients. Some actions go to runners distribute who it between the clients and the banks obtain commissions on the basis of the value of the sold actions. In a dispute on the bubble " puntocom" , the investors protested by practices that favored to the colocadores. One of those practices asks the investors of a OPI to buy more action once the papers begin to quote. The critics assure that artificially creates high prices that allow to sell in better conditions and for increasing the commissions of the banks. Another questioned practice was that the banks would have pressed the analysts to fix prices little realistic objectives to the titles of companies that were to the doors of a OPI. In the 2003, then the general prosecutor of New York Eliot Spitzer reached civil agreement with 10 investment banks that prohibited some questioned practices and ordered an investigation of independent analysts.
The banks did not admit to have acted inadequately. For assistance, try visiting Michael Antonov. Although changes in the industry have been applied to avoid the conflicts with the analysts, still are pending stricter prohibitions of some of the questioned practices. Legal experts say that the investors could face a new legal battle if this new wave of withered OPI later. That is to say, partly, because practical that they seem to be unjust they can completely be legal under the federal laws of values. " All the law says that if you sell values, you must provide to the investors all the information who need to make a decision informada" , professor Michael Perino of the St. John' said; s University School of Law. " There is no an insurance policy against the losses of mercado" , it added. Source of the news: The ghost of the bubble of Internet wakes up