Suppose, with reference to #57 above, that Pickford already owns an interest in the biotech firm, but Munford Stanley is not the underwriter.Pickford:
A)Does not have a conflict of interest.
B)Has a conflict of interest, but it is acceptable in IPOs.
C)Has a conflict of interest that must be disclosed to all purchasers.
D)Does not have a conflict of interest, but Munford Stanley does.
E)None of the above

Question

Quizplus · Accepted Answer

Pickford still has a conflict of interest, as he/she already owns an interest in the biotech firm. This information must be disclosed to all purchasers to ensure transparency and fairness in the IPO process. Munford Stanley's role as underwriter is irrelevant in this scenario.

Suppose, with Reference to #57 Above, That Pickford Already Owns