Which of the following is NOT an SEC rule?
A)Analysts at a securities firm underwriting an IPO cannot promote the stock for the first 40 days after the IPO.
B)An analyst's compensation should be directly aligned with the amount of business that the analyst brings to the securities firm.
C)Analysts cannot be supervised by the investment banking department within the securities firm.
D)When rating a security, an analyst must divulge any recent investment banking business provided by the analyst's securities firm to the firm that issued the security.

Question

Quizplus · Accepted Answer

Analyst compensation should not be directly aligned with the amount of business they bring to the securities firm, as this could create conflicts of interest. The SEC rules are designed to promote objectivity and transparency in the analysis of securities.

Which of the Following Is NOT an SEC Rule