Ethics P.106 Exam 2 from volume 2 schweser practice exams afternooon. Q.12.4
A mistake was made to to IPO Allocation. Clients who received extra shares and others who received less shares. – Trading Error.
How to resolve this issue?
” Credit short-term interest back to the accounts that should not have received the shares and subtract back interest from the accounts that should have received the shares ”
Answer: Incorrect. –”Short term interest paid previously to the wrong accounts should not be taken away from those accounts.”
Does that mean that the firm must reimburse the investors who received less shares from their own pockets?
And the ones who got the extra shares can keep the extra cash?作者: disiz64 时间: 2013-4-8 17:06
The key is that you must never penalise a client for getting on the fortunate end of a trading error, while you must reimburse all of those who suffer because of one.作者: smartpants 时间: 2013-4-8 17:06
Thank you guys!作者: infinitybenzo 时间: 2013-4-8 17:06
