n NISM Certifications
XV NISM Series XV
Medium

Which statement accurately reflects Regulation 16 of the Code of Conduct for Research Analysts?

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Analysts cannot invest in stocks they recommend

  2. B

    Analysts may invest freely without restrictions

  3. C

    Analysts can trade if disclosures are made

  4. Analysts shall not trade in stocks contrary to their recommendations

    Correct answer

Why this is the answer

Regulation 16 prohibits research analysts from trading in a manner inconsistent with their published recommendations.

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