CFA Practice Question

CFA Practice Question

An analyst enters into a contract to write a research report on a company, paid for by the company itself. Which method of payment would be ethical?
A. None. An analyst can not ethically take money from a company in exchange for a research report on the same company.
B. A flat-fee plus a bonus for each new investor the report attracts to the security. It would be unethical for the company to fail to compensate the analyst for the profit based on the report.
C. A flat fee only. It would be unethical to take compensation such that full compensation depends on the outcome of the report.
Explanation: Ethical method of payment is A flat fee only. It would be unethical to take compensation such that full compensation depends on the outcome of the report.

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