Q1. Michael Malone, CFA, is an investment analyst for a large brokerage firm in New York who covers the airlines industry. After hours in his personal time, Malone maintains an online blog on which he expresses his personal opinions about various investment opportunities, including, but not limited to, the airlines industry. On his blog, he posts a very negative investment opinion about WestAir stock. Malone knows that WestAir's stock will be downgraded to a “sell” by his firm next week. Malone has: A) violated Standard IV(A) Loyalty by divulging confidential information that is the intellectual property of his employer. B) violated Standard II(A) Material Nonpublic Information by releasing material that could negatively impact the price of the security. C) violated Standard VI(B) Priority of Transactions by releasing material information to the public before releasing to the firm’s clients.
Q2. Liam McCoy has lunch with a wealthy client whose portfolio he manages. McCoy advises the client to double his current position in the JKM Corporation due to an anticipated increase in sales. In accordance with Standard (V) Investment Analysis, Recommendations and Actions, when McCoy returns to his office he should: A) identify other clients for whom JKM may be a suitable investment and notify them immediately of his recommendation. B) document the details of the conversation with the client with regard to his investment recommendation. C) verify the suitability of the investment recommendation before placing the client’s order.
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发表于 2008-12-29 16:15
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