Lance Tuipulotu, CFA, is a portfolio manager for an investment advisory firm. He plans to sell 10,000 shares of Park N’Wreck, Inc. to finance his daughter’s new restaurant venture, but his firm recently upgraded the stock to "strong buy." In order to remain in compliance with Standard VI(B) "Priority of Transactions," Tuipulotu must:
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A) |
not sell the shares of Park N’Wreck. | |
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B) |
notify his firm of his intention to sell the shares before selling the shares. | |
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C) |
delay selling the shares until a firm client makes an offsetting purchase to avoid having a market impact. | |
Standard VI(B) "Priority of Transactions" does not prohibit Tuipulotu from trading opposite the firm’s recommendation, but he should notify his firm first. Note that if Tuipulotu were a research analyst covering Park N’Wreck, he may be prevented from selling the security if his firm claims compliance with the CFA Institute’s Research Objectivity Standards. | 
发表于 2011-2-27 13:27
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