Seeing is believing!

Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.

Basic Question 1 of 5

George Moses, CFA, follows Technicorp as an analyst for a brokerage company. Extensive study has led Moses to rate Technicorp as a "sell", largely because of increasing competition in the industry. At a recent CFA Institute's society meeting, Moses discussed Technicorp's prospects with two other analysts who also follow the company. Although the other analysts did not say why, both said that Technicorp was about to experience rapid earnings growth. Upon returning to his office, Moses released a "buy" recommendation based on this new information. Moses was in ______.

A. violation of CFA Institute's Standards because he copied the opinions of others
B. violation of CFA Institute's Standards because he did not seek approval of the change from his supervisor
C. violation of CFA Institute's Standards because he did not have a reasonable and adequate basis for his recommendation

User Contributed Comments 4

User Comment
dipta The critical clue is that the other analysts did nt say "WHY". Had they said so, then Moses would have had the obligation to disclose that the fact and opinion belonged to someone else - plagiarism
snider but he does not have any responsibility to do so: i.e. encourage his friend to disclose the info.
johntan1979 What if the other 2 analysts did their own respective extensive research and diligence and then rate it as a BUY? Will Moses be in violation by switching from SELL to BUY?
raffrobb Members and Candidates MUST check 2nd and 3rd party research too.
You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

demonstrate the application of the Code of Ethics and Standards of Professional Conduct to situations involving issues of professional integrity

recommend practices and procedures designed to prevent violations of the Code of Ethics and Standards of Professional Conduct

identify conduct that conforms to the Code and Standards and conduct that violates the Code and Standards

CFA® 2024 Level I Curriculum, Volume 6, Module 3.