morebeans

In the question all it says is a “substantial rise”….why could he not believe it was a good buy on the day he placed the buy recommendation and then after a huge rise feel it was a sell? The example I gave is saying that something can be a complete bargain one day at a certain price but after a substantial rise it may be in the best interest of the clients to sell…regardless of how optimistic the outlook was 3 days ago the price today may not provide a reasonable return…It does not say anything about using incorrect facts or other questionable reasoning in the original recommendation just that a short time after there was a substantial rise…the market could have took the price way over the original price target. I do not think they provided enough info to warrant this being a clear attempt at manipulation
Only positive here is this question won’t be on the actual exam since it’s here…thanks for the response Andrew…please advise if you feel my argument does not make sense…and disregard the shorting of the stock (was just saying it could now be overvalued and best interest to sell)