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:

365-Day Year

A term referring to the normal count of days in a calendar year, not including leap years which have 366 days.

Quarterly Payroll

The total amount of wages paid by a business to its employees in a three-month period.

Ordinary Simple Interest

A method of calculating the interest charge on a loan based on the principal amount, interest rate, and time.

360-Day Year

Refers to an accounting simplification where a year is assumed to have 360 days instead of 365 or 366, commonly used in financial calculations.