Which of the Following Is NOT an SEC Rule

question 13

Multiple Choice

Which of the following is NOT an SEC rule?

• A)Analysts at a securities firm underwriting an IPO cannot promote the stock for the first 40 days after the IPO.
• B)An analyst's compensation should be directly aligned with the amount of business that the analyst brings to the securities firm.
• C)Analysts cannot be supervised by the investment banking department within the securities firm.
• D)When rating a security, an analyst must divulge any recent investment banking business provided by the analyst's securities firm to the firm that issued the security.

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Definitions:

Bonds Payable

Long-term debt instruments issued by a company to investors, promising to pay back a specified sum of money at a future date along with periodic interest payments.

Cash Dividends

Payments made by a corporation to its shareholders from earnings, usually in the form of cash.

Direct Method

A methodology applied in cash flow statements to present major classes of gross cash receipts and payments, offering a clear view of cash flow from operating activities.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or a business cycle, whichever is longer.