1) A conflict of interest arises in investment banking because the banks are attempting to simultaneously serve two client groups
A) the security issuing firms and the security buying investors.
B) the government and the stockholders.
C) the government and the security issuing firms.
D) the security issuing firms and the lawyers.
2) The practice of ________ is allocating initially underpriced initial public offerings to executives in companies the investment bank hopes to do underwriting business with in the future.
A) discounting
B) spinning
C) peppering
D) wiring
3) A conflict of interest can occur for accounting firms when the firms both
A) provide auditing services and nonaudit consulting services.
B) provide nonaudit services and tax advice.
C) enter data and record data.
D) monitor data and underwrite securities.