Scenario: Many brokerage firms got into a lot of trouble because their analysts continued to recommend clients buy Enron as its share price plummeted. This was due to the conflict of interest in that those brokerage firms did not want to lose Enron as a client. It was said that buy recommendation was really a hold. Also, a hold recommendation really meant, sell because no brokers wanted to lose clients. Do you believe a stock analyst can truly be independent if he knows his brokerage firm depends on the corporation he is evaluating for tens of millions of dollars in underwriting fees each year? Explain.