CFA® Level I question of the day
8 November 2026 · Equities
Sell-side recommendations have historically included far more Buy than Sell ratings. A commonly cited reason is:
Show the answer and explanation
Answer: C. conflicts from investment banking links
Relationships with issuers who may be banking clients, and the need for management access, can discourage negative ratings.
Why the other options are wrong:
- A. buy-side firms require only positive research - Buy-side clients value accurate research, including sell ideas; demand does not explain the skew.
- B. regulations forbid published sell ratings - No such prohibition exists; Sell ratings are permitted, just less common.
Medium · EQ.17.b
· learning outcome: Contrast research on the sell side with the buy side and explain what activist short sellers do
More on Equities
Notes, formulas and a worked question for every learning outcome are on the
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CFA Level I syllabus alongside.
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