Question
Jim Orlando, CFA, is a research analyst with a brokerage firm. He decided to change his recommendation on the common stock of Alpha Company from
Jim Orlando, CFA, is a research analyst with a brokerage firm. He decided to change his recommendation on the common stock of Alpha Company from a "buy" to a "sell." He faxed this change in investment advice to all his current customers. The next day, a new customer called to buy 500 shares of Alpha Company. According to CFA Institute Standards of Professional Conduct, Orlando:
a.may accept the order because he has complied with the standard on fair dealing with customers.
b.may accept the order when the customer specifies in writing that he was notified of the change in the recommendation.
c.should advise the customer of the change in recommendation before accepting the order.
d.should delay executing the order until five days have elapsed after the communication of the change in recommendation.
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