Question
Name 5 inside information that are material. As a student, on your own, you try your hand at analyzing and picking stocks. As you are
Name 5 inside information that are material.
As a student, on your own, you try your hand at analyzing and picking stocks. As you are developing your skills as an analyst, you also participate in a variety of investor blogs and internet chat rooms, sharing your opinions about various stocks. It turns out that you are more often right than wrong about your calls and your investment acumen has not gone unnoticed. You have developed a following and your opinions are moving stock prices as soon as they are posted. Realizing this, you invest more heavily in your stocks before posting your opinions.
1) Have you violated "Duties to Your Clients"? Why?
2) What ethical issue(s) do this case relate to?
3) What should you do if you want to trade on your "picks"?
Step by Step Solution
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1 Yes by investing in stocks prior to sharing your opinions you have ...Get Instant Access to Expert-Tailored Solutions
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