Hi, I think the answer of the question below is A, but I am not 100% sure…
The answer B could be right if it’s an extreme case, and the answer C also looks correct when the first step to attempt to stop behavior by bringing it to the attention of the employer is unsuccessful.
Does anyone tell me whether my understanding is correct or not?
Larry Becker is a CFA charterholder and an analyst with a brokerage firm. He has become aware that his firm, as underwriter for a new issue of the common stock of XYZ, Inc., has issued a prospectus that materially overstates the financial condition of XYZ. The best course of action for Becker to take would be to:
A Report this findings to the appropriate supervisory person in his firm.
B Resign from the firm to clearly dissociate himself from the violation.
C Confine his activities to areas that are clearly unrelated to the underwriting of XYZ shares.