6. John is the chief financial analyst at Heinrich Capital. He is widely regarded as an authority on the European automobile sector and has been repreatedly nominated by many leading magazines and newsletters as a "best analyst" for the automobile industry. After speaking with representatives of GL Ltd. - a European auto manufacturer with sales primarily in Hong Kong (HK), and after conducting interviews with salespeople, labor leaders, banking officials, and his firm's HK currency analysts, John changes his conclusion about GL Ltd. from "market underperform to market outperform. He plans to issue a research report and retains all supporting material used to reach his conclusion just in case questions later arise. The next day, John is preparing to be interviewed on a global financial news television program where he will discuss his changed recommendation on GL Ltd. for the first time in public. While preparing for the program, he mentions to Larry, the journalist who will be interviewing him, the information he will be discussing (Larry is not a client of John). Just prior to going on air, Larry calls his broker and increases his investment in GL Ltd. by 5,000 shares. Carol, a research analyst at another firm, overhears the conversation between John and Larry. After the broadcast, she purchases 3,000 shares of GL Ltd. for her personal account. Shortly after that, she recommends purchase of GL Ltd. for her employer's account. Required: Critically discuss whether the actions of John, Larry and Carol are ethically acceptable. If yes, give reasons for your opinion; if not, what would be the best courses of action? (25 marks)