Which of the Following Is Not an SEC Rule

question 33

Multiple Choice

Which of the following is not an SEC rule?

• A) Analysts at a securities firm underwriting an IPO cannot promote the new 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:

Control Point

A specific point or condition in a process or experiment that is used as a standard for comparison or to ensure consistency.

Change Window

A defined period during which changes are allowed or implemented in a system, process, or environment, often used in IT and project management.

True Experimental Design

Research design involving random assignment of participants to conditions and manipulation of an independent variable to determine its effect on a dependent variable.

Random Assignment

A method used in experimental designs to allocate participants to different groups in a study, ensuring each has an equal chance of being assigned to any group.