To Avoid a Conflict of Interest When an Analyst Recommends

question 108

Multiple Choice

To avoid a conflict of interest when an analyst recommends a stock as a "buy,"

• A)the analyst must declare that he or she owns the stock.
• B)the analyst should increase the sell to buy ratio.
• C)the analyst should perform thorough and in depth analysis.
• D)the analyst should sell his or her own position in the stock beforehand.

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Definitions:

Evade Taxation

The illegal practice of avoiding the payment of taxes owed by using deceitful or unlawful means.

Competitive Pressures

Forces or factors in the external environment that compel organizations to adapt, innovate, and continually improve to maintain or enhance their market position.

Operations Expenses

Operations expenses refer to the costs associated with the day-to-day activities of maintaining a business, including manufacturing, marketing, and administrative expenses.

Indirect Political Risk

The potential for losses or negative impacts on a business due to political decisions or events that indirectly affect the operating environment.