Conflicts of Interest Exist in the Investment Banking Industry

question 70

Multiple Choice

Conflicts of interest exist in the investment banking industry.In 2002 ten of the top U.S.investment banking firms agreed to pay a total of $1.4 billion in fines and they are also required to

• A) use the Dutch auction process for any new IPOs.
• B) use the English auction process for any new IPOs.
• C) purchase independent research from third parties.
• D) all of the above

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Definitions:

Developing Countries

Countries with a low living standard because of less human and physical capital per worker; typified by high rates of illiteracy, high unemployment, high fertility rates, and exports of primary products; also known as low-income and middle-income economies

Physical Capital

The stock of equipment, buildings, vehicles, and machinery that is used to produce goods and services; a factor of production that is not consumed in the production process.

Labor Productivity

The output per worker, assessing how efficiently labor is utilized in production.

Technology Quality

Technology quality refers to the degree of excellence, reliability, and performance of technological products or systems.