Some of this assignment is based on the article, however many of the 16 questions will be based on your knowledge of financial markets and often your opinion.Downgrade WarningFor this assignment, read J.P. Morgan Tells Analysts to Warn of a Downgrade (click the link to access the article). Then answer the following questions using your own Word document:What is meant by analysts independence?When and how might analysts independence be compromised?What pressures do analysts face that might reduce their independence?Is maintaining a buy recommendation on a stock after its price has fallen evidence that an analysts independence is compromised?Do analysts who currently recommend investing in tech stocks and the broader stock market lack independence?What exactly does Peter Houghtons memo say?Does the memo say that analysts should compromise their independence?How does the memo raise questions about analysts independence?Does it make any difference whether analysts arent pressured to change recommendations, but only to make factual changes?What are the buy side and sell side?Why might the sell side be unwilling to make sell recommendations on stocks?If the buy side has its own analysts, would the buy side ever look at sell side analysts reports?Why might sell side companies extend the normal, common courtesy of warning firms before they downgrade their stocks?Would you consider this good business practice?What is Mr. Barkocys buy side criticism of such practices? Why might the sell side ignore such criticism?Former SEC chairman, Arthur Levitt, criticized analysts in January this year in a speech in Philadelphia. Read the speech at: http://www.sec.gov/news/speech/spch457.htm. Levitt comments that a sell recommendation from an analyst is as common as a Philly steak sandwich without the cheese. If analysts dont issue sell recommendations, how do they advise investors that they should sell certain stocks?
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]