CFA Practice Question

CFA Practice Question

Samuel is equity analyst for an active investment company NS Inc. Samuel purchases stocks that are placed on NS's recommended purchase list for his personal account before they are purchased for the clients. Samuel has violated:
A. VI (B): Priority of Transactions.
B. III (A): Loyalty.
C. Both III (A): Loyalty, Prudence and Care and VI (B): Priority of Transactions.
Explanation: Purchasing for his own account before purchasing for the clients is a violation of Loyalty, Prudence and Care. Purchasing stock for personal account before they are purchased for clients' accounts is a violation of Priority of Transactions.

User Contributed Comments 1

User Comment
rodrigowai The standard III (A) is called Loyalty, Prudence and Care. The standard IV(A), Duties to employers, is called Loyalty.
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