“investment personnel who serve as directors may receive the securities or options to purchase securities of the company as compensation for serving on the board, which could raise questions about trading actions that might increase the value of those securities.” (Institute 126) Institute, CFA. Level I 2012 Volume 1 Ethical and Professional Standards and Quantitative Methods, 7th Edition. why the receipt of securities or options to purchase securities could raise questions about trading actions that might increase the value of those securities?
You really need to start thinking about these situations, rather than relying on people here to answer your questions. They’re not that difficult.
If you own stock in XYZ and your trades might increase the value of XYZ stock, can you see that those trades might be questionable? Might there be some (let’s say, personal) motivation to increase the value of XYZ stock artificially?
qqqbbbbbee is doing level 1 again?
Level II.
Try to keep up.
