When an equity analyst buys shares for his own account while making a buy recommendation, this creates a conflict of interest with?

The situation described presents a clear conflict of interest with the clients of the analyst's employer. When the analyst buys shares for his own account while simultaneously making a buy recommendation, he may be perceived as prioritizing his personal financial gains over the best interests of his clients. This action could lead to a scenario where the analyst benefits from the stock appreciation before the clients can act on his recommendation. This undermines the trust that clients place in analysts to provide unbiased and objective investment advice. In essence, it raises ethical concerns about whether the analyst's recommendations are genuinely in the clients' best interest or if they are influenced by personal motivations.

This scenario emphasizes the importance of maintaining integrity in the analyst-client relationship and the need for transparency in disclosures regarding personal trading activities.