The Incentive for Analysts in Investment Banks to Distort Research

question 27

Multiple Choice

The incentive for analysts in investment banks to distort research increases when

• A)revenues from brokerage commissions increase.
• B)the potential revenues from underwriting greatly exceed brokerage commissions.
• C)the potential brokerage commissions greatly exceed revenues from underwriting.
• D)revenues from underwriting decrease.

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Definitions:

Thalamus

Large mass of gray matter that forms the larger dorsal subdivision of the diencephalon.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain in humans and other mammals, responsible for higher brain functions, including sensation, voluntary muscle movement, thought, reasoning, and memory.

Phasic Receptors

Sensory receptors that detect changes in stimulus intensity, adapting quickly and only responding to the onset and cessation of stimuli.