The Merrill Lynch Case in 2002 Confirmed That Many Analysts

question 47

Multiple Choice

The Merrill Lynch case in 2002 confirmed that many analysts:

• A)were paid too much.
• B)were unable to accurately pinpoint earnings.
• C)gave buy recommendations to win investment banking business.
• D)shared private information about companies with investors.

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Definitions:

Thalidomide

A medication that caused birth defects when it was given to pregnant women during the 1950s and 1960s, notably used initially as a sedative and for morning sickness.

Pregnant Women

Refers to females who are in the state of carrying a developing embryo or fetus within the uterus.

Monozygotic Twins

Twins that are genetically identical because they were formed from a single fertilized egg that split into two, sharing 100% of their DNA.

Dizygotic Twins

Also known as fraternal twins, they develop from two separate eggs fertilized by two different sperm cells, resulting in genetically distinctive siblings.