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 d) When the specialist gave the floor broker the quote of “59.20 to 35; 6 by 11,” the quote meant ...
The correct answer is c When the firm is a market maker in the stock then it must act as a principle. Principal is the main ...
The correct answer is c). Early withdrawal from a non-qualified annuity--prior to age 59½, except for death or disability, ...
The correct answer is c) Although church bonds are normally considered to be exempt securities, the RR is obligated, by NASD ...
- No results found.