Question
Chuck Wilson, CFA, the financial manager for Neilson Corp., has just learn that Neilsons quarter net income will fall well short of consensus analyst expectations.
Chuck Wilson, CFA, the financial manager for Neilson Corp., has just learn that Neilsons quarter net income will fall well short of consensus analyst expectations. Wilson decides that he should immediately notify analysts covering Neilson of this negative development. He calls two particular analysts first who have followed Neilson stock for several years and have alerted Wilson to important development at competing firms. Failing to notify these analysts might damage Wilsons ability to monitor his competition, to the detriment of his own shareholders. Under CFA Institutes Code and Standards, Hill should most appropriately:
a.issue a press release regarding Neilsons earrings prior to calling analysts.
b.notify the two analysts first because their information adds value for Neilsons shareholders.
c.notify no analyst until his is ready to issue the final numbers for the quarter.
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