Answer Happy

The corporate finance department of an investment banking firm has decided to compete for the business of FMA Inc. Knowing that the firm's brokerage unit now has a "sell" recommendation on FMA Inc., the head of investment banking asks the head of the brokerage unit to change the recommendation from "sell" to "buy". According to the CFA Institute Standards of Professional Conduct, the brokerage unit would be permitted to: remove the company from the research universe and put it on a restricted list giving only factual information about the firm. increase the rating by no more than one increment in this case to a "hold" recommendation). assign a new analyst to the company and change the rating.