A) Simply impose a Fire Wall between these two departments.
B) Helen should immediately cease trading in any of Mega Corp.'s securities.
C) Helen, along with all the other investment managers, must sign a confidentiality agreement not to release any information that they may obtain through the investment banking division.
D) The investment banking division should turn down offering their services to Mega Corp.
The correct answer is: a)
It is very important for information not to flow outside the boundries of the investment banking division. Most information found in this department is material and nonpublic. Therefore, an effective Fire Wall must be erected around this department. If in fact, Helen did cease trading in Mega Corp., then she may breach her fiduciary duty to her own clients either by not selling Mega shares when she should of, or not buying Mega shares when she should of.
2005 CFA Level 1 LOS: 1.2-1.3.a - 1.3.b
The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
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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 ...
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