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.

---

Definitions:

Sharecroppers

Farmers who rent small plots of land to farm and in return, they give a portion of their crop yield to the landlord as rent.

Landlords

Individuals or entities that rent land, buildings, or housing to tenants for a specified period under a lease agreement.

Black Cabinet

A term for the group of African American advisers to President Franklin D. Roosevelt during his presidency.

Stalwart Democrats

Members of the Democratic Party in the United States who are particularly firm, steadfast, or loyal in their political views, often resisting change.