In an effort to increase the stock price of a company called, Cassandra Rail and Shipping Co., Jim Beamy, CFA logs on several investor chat rooms and starts rumours that the company is about to expand by buying out a major and yet unnamed railway company. He also implies that Cassandra Rail and Shipping is on the verge of receiving a major shipping contract for steel. The information Jim is posting has not been verified (Total 8 Marks)

a) What CFA Standard is Jim violating (2 Marks)

b) Why is this unethical? (2 Marks)

c) What is this scheme commonly referred to? (1 Mark)

d) Who gets hurt by these types of schemes? (3 Marks: positive marks for correct answers, negative marks for any incorrect answers. Think & Respond Carefully)