Betsy Fox is an investment advisor who has a client, Don Gordon, who is an employment lawyer. At lunch, Fox noticed Gordon and the Chief Financial Officer of Blue Star Company at the next table. She overhears them talking and ascertains that Blue Star is about to announce higher than expected earnings. Before the earnings release, Gordon contacts Fox and asks her to purchase 3,000 shares for his portfolio. Fox: A) must refuse to purchase shares for Gordon. B) can only purchase shares for her personal account after informing all of her clients about the potential of the increase in earnings. C) can purchase shares for Gordon, but cannot ever purchase shares for her personal account. D) must wait until after she purchases the 3,000 shares for Gordon to purchase shares for her personal account, and then must keep the information quiet. I understand the answer, but not sure if any of these options are right… Please comment with your answers…
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