I. Allow Martek Securities to carry out its own trades before Rennie executes the trades for his personal accounts.
II. Ensure that before the clients' accounts are adjusted, Martek Securities has an opportunity to carry out its own trades.
III. Execute the trades for the clients first before Rennie executes any trades for his own personal accounts.
IV. Execute a block trade and then determine on a pro-rata basis, how many shares will be affected from the accounts of the clients, the firm and members' personal accounts.
a) I and III only
b) I, III and IV only
c) II and IV only
d) II and III only
The correct answer is: a)
The guiding principle behind Standard VI-B is to take care of clients first, and only after the clients trades have been executed would it be appropriate to take care of personal interests. Both I and III indicate the appropriate priority. A pro-rata distribution of a block order (Choice IV) gives equal priority, while choice II places personal interests first. Both violate the Standard.
Free info on financial certification exams including study guides, exam questions, and much more!
The correct answer is C). SEC Release IA-1092 considers financial planners, pension consultants and sports and entertainment ...
The correct answer is a): Since Todd owns the stock and expects another stagnant year ahead, he would employ a covered call ...
The correct answer is b. When a periodic payment (or contractural) plan company is organized as a spread-load company, it ...
- No results found.