QUESTION 1 Suppose that an investment management firm has been hired by XYZ Corporation to work on a new stock issue that the company is planning to offer. The investment management firm's brokerage unit, where John is the head, has a sell recommendation on XYZ, but the head of the investment banking department, Jack, has asked John to change the recommendation from sell to buy. What should John do? Increase the recommendation by no more than one increment (in this case to a "hold" recommendation. Assign a new analyst to reevaluate the company and decide if the stock deserves a higher rating. Place the stock on a restricted list and stop issuing any investment recommendations and give only factual information about the company Increase the recommendation to "buy" as Jack suggested Do nothing until the investment-banking unit finalizes the dissemination of the initial prospectus of the XYZ to gauge the investors' interest on the stock