Boom and Bust in Independent Equity Research

Today’s L.A. Times [free sub req.] has an overdue look at the boom and bust in independent equity research. While many people thought the securities settlements of a few years ago would create a new golden age for independent firms, the reality has been considerably different. Mind you, a little consolidation might change everything.

There are about 450 independent research firms today, but that is
expected to drop to about 150 by 2009, according to Integrity Research.
However, the revenue flowing to the surviving firms is expected to
double from $1.5 billion in 2004 to $3.1 billion by 2009.