Exercise
Answer the following questions.
- 1. John is a research analyst at ACME. The supervisor of the investment banking department at ACME wants to be involved in the review of a research report completed by John. Which of the following is true of the duties of the supervisor in investment banking?
- A. The supervisor may discourage John’s research report from being published without going through compliance or legal.
- B. The supervisor may discourage the report from being published if he documents this with compliance or legal.
- C. The supervisor may influence changes to some of the content of the report prior to it being published if he documents the changes with the legal department.
- D. The supervisor may not do any of the listed choices.
- 2. According to FINRA, a “research report” is:
- A. A broad-based index discussion
- B. A general discussion of market or economic conditions
- C. A discussion of supply and demand for a sector
- D. An analysis of an individual company that contains enough information to make an investment decision
- 3. What is the purpose of the Research Analysts and Research Reports Rule?
- A. To make sure that research analysts are properly trained
- B. To make sure that investment banking is run s