Which of the following is not an SEC rule?
A)Analysts of securities firms underwriting an IPO cannot promote new 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 securities department within the securities firm.
D)An analyst's rating must divulge any recent securities business provided by the securities firm that assigned the rating.

Question

Quizplus · Accepted Answer

The SEC does not have a rule that an analyst's compensation should be directly aligned with the amount of business they bring to the firm. This could create conflicts of interest, which the SEC aims to prevent.

Which of the Following Is Not an SEC Rule