A research analyst at a Bay Street brokerage publishes a report on Prairie Sky and advises clients to buy the shares. In the framework of stakeholders, the analyst is best described as:
A research analyst at a Bay Street brokerage publishes a report on Prairie Sky and advises clients to buy the shares. In the framework of stakeholders, the analyst is best described as:
Answer
An external user of the financial statements
Options - A. An external user of the financial statements - B. An owner, because the report moves the price - C. An internal stakeholder with inside information - D. A regulator, because the report is public Why - A. Correct — analysts read the published statements and advise investors; they use the information but own nothing. - B. Moving the price is influence, not ownership. Ownership means holding shares; the analyst holds a research opinion. - C. Analysts work outside the company and see only what it publishes — that is the definition of an external stakeholder. - D. Regulators (the OSC, the exchange) set and enforce disclosure rules; an analyst has no such authority.
OpenStax Intro to Business §2.4, §16.5–16.6; Bigel ch 1–2