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

Question

Quizplus · Accepted Answer

By declaring that they own the stock, the analyst is being transparent about their personal interest in the stock, which will help investors make an informed decision. The other options, such as increasing the sell to buy ratio or selling their own position, do not necessarily address the issue of conflict of interest. Performing thorough and in-depth analysis is important regardless of a potential conflict of interest.

To Avoid a Conflict of Interest When an Analyst Recommends