You guys tried those free ethics questions on https://www.professionalexamreview.com ? Got some questions. Q5. Smith gives nonpublic material info to someone, but does not trade himself. The other guy also does not trade. Any violation? Q6. Bowen suggesting (approaching retirement) client to buy put option, because of potential volatility of the portfolio. Violation? Is the answer D? Q7. Keep a client list (planned to be used after leaving firm) but not using it while still at firm. Is keeping the list itself a violation?
Q5, I would say yes, Smith doesn’t know beforehand the other guy won’t try, it would hurt the market integrity Q6, yes, suitability Q7, no, as long as when that guy leaves he won’t take the list
Q5 - agree…i think this would be a violation Q6 - i think no…using a put within diversified portfolio is reasonable, especially if being used to protect on the downside. obviously need more information if the put is suitable to the client. I’m just going by the one line posted. Q7 - cannot take list. this is company property. This would be a violation. dont know if those are right…my two cents
exactly same as jmychasi.