Independence and Objectivity in Financial Analysis

Maintaining Independence and Objectivity in Relationships with Securities Issuers

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Question

Standard ________ states that the financial analyst must use particular care to maintain independence and objectivity in relationships with issuers of securities.

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C

Standard IV (A.3) - Independence and Objectivity - ensures that clients have the benefit of work and opinions unaffected by any potential conflict of interest that may adversely affect their judgment. Members should maintain their independence by being wary of "perks" offered by external sources such as corporations, issuers, underwriters and brokers.