What term might be used to describe an underwriter who influences an analyst in the same firm to modify a report so as to create a favorable impression of a securities issue?
A)SOX compliance
B)Spinning
C)Conflict of interest
D)Chinese wall

Question

Quizplus · Accepted Answer

This scenario would be considered a conflict of interest, as the underwriter is seeking to influence the analyst's report in order to benefit their own financial interests. This behavior goes against the ethical standards of conducting fair and independent analysis. "SOX compliance" refers to complying with the Sarbanes-Oxley Act, which established financial regulations and reporting requirements for publicly traded companies. "Spinning" refers to the practice of giving favorable IPO allocations to corporate executives or other individuals in order to gain their business or favor. "Chinese wall" refers to the separation between different departments or individuals within a financial firm to prevent the sharing of confidential or privileged information.

What Term Might Be Used to Describe an Underwriter Who