Question
Samantha works for an investment firm. Stan, a new client of the firm, is meeting with Samantha for the first time. After spending a few
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Samantha works for an investment firm. Stan, a new client of the firm, is meeting with Samantha for the first time. After spending a few minutes getting acquainted, Samantha explains to Stan that she has discovered a highly undervalued stock that offers large potential gains. She recommends that Stan purchase the stock. Samantha has committed a violation of the Standards. What should she have done differently?
Samantha should have determined Greens needs, objectives, and tolerance for risk before making a recommendation of any type of security.
Samantha should have thoroughly explained the characteristics of the company to Green, including the characteristics of the industry in which the company operates.
Samantha should have explained her qualifications, including her education, training, and experience.
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