Joanne Bume, CFA, is the head of research at large brokerage firm. Currently, her airline analyst has a "market-underperform" rating on Universal Airline Company. Joanne is contacted by Bill Smith, who is not only the head of the corporate finance department for the firm but he is also vice-chairman. It seems that Bill is soliciting some business from Universal however, the current rating imposed by the airline analyst is hampering his efforts. Bill asks Joanne to persuade her airline analyst to revisit the facts about Universal, since "there is so much at stake here". In order not to violate the Standards of Professional Conduct, Joanne should:
A) cease rating Universal Airlines and instead only provide factual statements about the company.
B) assign a different analyst to prepare a new report on Universal.
C) ask Bill to submit, in writing, what he is instructing Joanne to do, and then execute his instructions.
The correct answer is: a)
The proper course of action would simply be to place Universal Airlines on a restricted list until the investment banking relationship with that company comes to an end. However, during the period in which that relationship is active, the research department may only release factual information about Universal. No ratings should be released.
The correct answer is b. Any time the actual growth rate of the separate account exceeds the account’s AIR, the payment will ...
The correct answer is a) Spinning is the act of selling hot issues to the personal accounts of corporate officers which in ...
The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
Free info on financial certification exams including study guides, exam questions, and much more!
- No results found.