3、During an onsite company visit, Marsha Ward, CFA, accidentally overheard the Chief Executive Officer (CEO) of Stargazer, Inc., discussing the company's pending tender offer to purchase Dynamica Enterprises, a retailer of Stargazer products. According to the Standards of Practice Handbook, Ward may not use the information to take investment action because:

A. the information relates to a tender offer.

B. acting on the information would breach a duty to both the CEO and Stargazer.

C. she does not have a reasonable and adequate basis for taking investment action.

D. acting on the information would breach a duty to both Stargazer and Dynamica.

[此贴子已经被作者于2008-5-17 18:07:30编辑过]

Correct answer = A

Standards of Practice Handbook, 9^th edition (CFA Institute, 2005), pp. 37-47, 99-100
Standards I-VII
2008 Modular Level I, Vol. 1, pp. 36-45, 80-82
Study Session 1-2-a
demonstrate a thorough knowledge of the Code of Ethics and Standards of Professional Conduct by applying the Code and Standards to specific situations presenting multiple issues of questionable professional conduct
Trading on the information is restricted as it relates to a tender offer; it is clearly material, nonpublic information.