During a round of golf, James, chief financial officer of WilliamsF1, mentions to Jean, a local investment adviser and long-time personal friend, that WilliamsF1 is having an exceptional sales quarter. James expects the results to be almost 10% above the current estimates. The next day, Jean initiates the purchase of a large stake in the local exchange-traded retail fund for her personal account.
During a round of golf, James, chief financial officer of WilliamsF1, mentions to Jean, a local investment adviser and long-time personal friend, that WilliamsF1 is having an exceptional sales quarter. James expects the results to be almost 10% above the current estimates. The next day, Jean initiates the purchase of a large stake in the local exchange-traded retail fund for her personal account.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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During a round of golf, James, chief financial officer of WilliamsF1, mentions to Jean, a local investment adviser and long-time personal friend, that WilliamsF1 is having an exceptional sales quarter. James expects the results to be almost 10% above the current estimates. The next day, Jean initiates the purchase of a large stake in the local exchange-traded retail fund for her personal account.
Group of answer choices
Jean did not violate the Code and Standards because she did not invest directly in securities of WilliamsF1
Both James and Jean violated the Code and Standards
James did not violate the Code and Standards because the comments made to Jean were not intended to solicit an investment in WilliamsF1
James violated the Code and Standards by divulging material non-public information
Jean violated the Code and Standards by investing in the exchange-traded fund that included WilliamsF1.
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