Hi all, Can someone please explain to me what does it mean by “firms should take the contra ide of only unsolicited customer trades”? Thanks for your help!
This should be posted in the appropriate Level 1, 2, or 3 forum, not in the section for “Discussion not related to the CFA exam.” But in answer to the question, I’m not sure I understand the sentence. Is there a letter missing off of -ide? rhoda Wrote: ------------------------------------------------------- > Hi all, > > Can someone please explain to me what does it mean > by “firms should take the contra ide of only > unsolicited customer trades”? > > Thanks for your help!
It means that if a firm has material, non public info about a company then it should not solicit orders of a (attempt to sell(buy) to(from) a client) security of the company. A firm should not cease all trading in a security with clients when it has material, non public because it could send a message that the firm has the info. A firm should only act as the counter party to a trade when a client calls up and wants to buy or sell. krazykanuck, thanks for adding value. Was it really that hard to find that missing “s”?