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3. Regulation of securities firms Which of the following agencies provides securities firms with insurance on cash and securities deposited at brokerage firms? O The
3. Regulation of securities firms Which of the following agencies provides securities firms with insurance on cash and securities deposited at brokerage firms? O The Federal Deposit Insurance Corporation O The Office of the Comptroller of the Currency The Securities Investor Protection Corporation O The Financial Industry Regulatory Authority In the early 2000s, the process by which securities analysts rated stocks was widely criticized. Their pay was typically tied to the new business they brought to the securities firm, and they knew firms in need of advisory or underwriting services would likely hire the securities firm that gave their stock the highest valuation. Consequently, they had motives to inflate their ratings of a firm's stock, which would cause investors relying on these ratings to be misinformed. In 2002, which of the following were rules implemented by the SEC in an attempt to prevent analysts from inflating stock ratings? Check all that apply. An analyst's pay must now be directly derived from the accuracy of the ratings they provide. Analysts must now be supervised by their securities firm's investment banking department. Analyst's ratings must now disclose all recent investment banking business provided by the securities firm that assigned the rating. Analysts from a securities firm that underwrites an IPO can no longer promote the stock within the first 40 days of the IPO
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