Historically, sell-side equity research has tended to assign:
A) very unfavorable ratings to target companies.
B) unfavorable ratings to target companies.
C) favorable ratings to target companies.
D) neutral ratings to target companies.

Question

Quizplus · Accepted Answer

Historically, sell-side equity research has often assigned favorable ratings to target companies due to potential conflicts of interest, such as maintaining good relationships with the companies they cover or to support investment banking business.

Historically, Sell-Side Equity Research Has Tended to Assign