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Betsy Fox is an investment advisor who has a client, Don Gordon, who is an employment lawyer. At lunch, Fox noticed Gordon and the Chief Financial Officer of Blue Star Company at the next table. She overhears them talking and ascertains that Blue Star is about to announce higher than expected earnings. Before the earnings release, Gordon contacts Fox and asks her to purchase 3,000 shares for his portfolio. Fox:

A) must refuse to purchase shares for Gordon.

B) can purchase shares for Gordon, but cannot ever purchase shares for her personal account.

C) can only purchase shares for her personal account after informing all of her clients about the potential of the increase in earnings.

sameeragarwal

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6^#

发表于 2011-7-13 14:43 | 只看该作者

Yup, the fact that she knows precludes her for participating on the trading on material information that was about to occur by gordon

- Guille

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SpyAli

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发表于 2011-7-13 14:43 | 只看该作者

This is a bit sticky to me.

If Fox had never overheard the conv. she must obey client's instruction to trade right?
Is it that she cannot knowingly involve in MNP?

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kkn006