CFAI Book 1, RD.4, PG. 177, Q6 Kepsh cannot go and sell his shares because the recommendation was a buy. Makes sense to not go back on the buy recommendation because it might show investors/readers that the analyst might not be telling the whole truth. BUT…this is his personal account and for a legitimate personal reason. Maybe he couldn’t get enough money together for the gift and thought buying the gift out-weighed the long term buy recommendation. I cannot see how this should be classified as NOT conforming with the CFAI Research Objectivity Standards. If he was selling because he thought the stock price would go down or had no legitimate reason, I agree it would not conform. Or is this just one of those examples/negatives of what analysts have to put up with by working in the industry? Thoughts?
He cannot sell shares when his company recommends a BUY unless he is in extreme financial distress.