In recent years, brokerage firm research reporting has been criticized because potential conflicts of interest may influence buy and sell recommendations. Which of the following steps can an investor take to use published research and limit the impact of misleading research?
A. Treat brokerage firm research as a contra-indicator along with other contra indicators such as odd lot volume and the put call ratio.
B. Balance brokerage firm research with other information sources.
C. Use only the information provided by the more established firms such as Merrill Lynch and Morgan Stanley.
D. Include in your own research information on whether the brokerage firm research operation is owned by the same firm that provides investment banking services to the clients whose stock it recommends.