CFA Practice Question
Jack and Jill work for Hill Industries. Jack finds that Hill has been manipulating the market by artificially increasing volume of trading. This is illegal. Jill finds that Hill has been trading excessively to increase commissions at the cost of the clients of the firm. Jack reports Hill's market manipulation to the authorities, and Jill reports Hill's excessive trading to the clients. Who has violated Standard IV (A) Loyalty (Duties to Employers)?
A. Only Jill, but not Jack.
B. Both Jack and Jill.
C. Neither Jack and Jill.
Explanation: It's okay to report such behavior.
User Contributed Comments 2
| User | Comment |
|---|---|
| jpducros | Client is king ! |
| sheridanla | The Market is the Czar!!! |