All the companies listed on the Nasdaq exchange will now get at least some form of research coverage, courtesy of the Nasdaq OMX Group Inc. (NDAQ), including nearly 900 that currently don't get any analyst coverage at all.

Nasdaq OMX announced Monday it entered an agreement with the Chicago-based independent research firm Morningstar Inc. (MORN) to provide research profiles targeted at retail investors.

"Investors need to be able to access insightful and trusted data and research to make investing decisions," Nasdaq Executive Vice President Bruce Aust said. "Together, Nasdaq OMX and Morningstar are filling a void that has existed for some time, particularly among small- to mid-cap companies."

Morningstar will produce research profiles for all of the more than 3,600 companies listed on Nasdaq OMX exchanges, beginning in the third quarter. The profiles will, however, fall short of full analyst coverage for each company. The four-to-five page reports will include an analyst's report on the industry the company is in, a profile of the company and a data tearsheet. The Morningstar analysts won't, however, forecast earnings or issue buy/sell/hold recommendations in the profile reports.

The "uncovered company" problem has been around for a long time, and has worsened as analyst ranks have been thinned as Wall Street banks increasingly view their research departments as a major cost center.

Aust acknowledged that the profile reports provided by Morningstar stop short of solving the problem.

"We in the financial industry owe it to investors to continue to try to find a way to create a solution for better research coverage," he said. "But until we can make it economical for everyone that's providing it, it's going to be a problem."

However, the deal between Morningstar and Nasdaq, the terms of which were not disclosed, means investors in companies that trade on the Nasdaq will continue to have access to at least a basic form of analyst research.

The profile reports are a new product for Morningstar that leverages its company information database, but is a step below Morningstar's regular analyst reports. Morningstar employs 95 analysts who cover about 2,000 companies in total, including about 500 to 600 Nasdaq-listed companies.

Morningstar President of Equity Research Catherine Odelbo said her company created the profile report product as it prepares to explore new markets for its research in the wake of the expiration of the 2003 Global Analyst Research Settlement in July.

The settlement provided $460 million to fund independent research from Morningstar and other firms over five years, funded by a dozen Wall Street research firms who settled with regulators over allegations their research analysts were pressured to promote certain stocks by their investment banking departments.

Morningstar has warned investors it expects its post-settlement revenue to be "significantly lower" beginning in the second half of the year. Morningstar received $21 million in settlement monies in 2008 - about 4% of its consolidated revenue last year.

Shares of Nasdaq fell 58 cents, or 2.6%, to $21.42 in recent trading, while Morningstar shares rose 23 cents, or 0.5%, to $42.88.

-By Ed Welsch, Dow Jones Newswires; 201-938-5244; edward.welsch@dowjones.com