trading contrary objective, standards, contrary, investment

CFA4Techie

Am I to read the research objectivity standards to say that under no circumstances should we trade our personal accounts against our company's recommendations?

In other words there is no circumstance where it is considered ethical to offload your position, even if you feel you've realized your desired investment objective? You cant choose when to take profits? You have to wait on your company to issue a sell order?

yalo

trading to the contrary "could" give rise to a perception of market manipulation eg you may advise all the firms clients to buy (assuming they do buy) and then if you sell, it my look like you advised only to hike the price so you could profit.

firat

Thats kind of goofy. I mean, sure you want to be with the firms rec's but, sometimes you may be like, ok i wanted enough to buy a swimming pool, or my target was 9%, lets not be greedy, or whatever - people have a million motivations for selling stock....


Oh well, my job ain't to change it, my job is to get the question right.

madaochenggong

the only time analyst may go contrary to firm's position is when under financial duress..

CP

redskins44

This is correct. Would not look good if you made a ton of money trading against company recommendations.