If potential revenues from underwriting greatly exceed brokerage commissions,there is ________ incentive for investment bank analysts to report ________ information about firms issuing securities.
A) stronger; unbiased
B) stronger; favorable
C) weaker; unbiased
D) weaker; favorable

Question

Quizplus · Accepted Answer

When potential revenues from underwriting greatly exceed brokerage commissions, there is a stronger incentive for investment bank analysts to report favorable information about firms issuing securities, as doing so can help secure underwriting deals and generate higher revenues for the investment bank.

If Potential Revenues from Underwriting Greatly Exceed Brokerage Commissions,there Is