An investment adviser has researched a privately held company and is extremely bullish on the company's prospects. She makes a personal investment of $100,000, for which the investment adviser received privately placed common stock with a Rule 144 restriction legend. One year later, the company goes public and the investment adviser, still being very bullish on the company, recommends the purchase of the IPO shares to her clients. Which statement is TRUE about this situation?
The investment adviser has not violated any rules because she is making a recommendation that is consistent with her bullish opinion of the company
The investment adviser has violated with FINRA IPO rule on free riding and withholding
The investment adviser has violated the insider trading prohibition under the Securities Exchange Act of 1934
The investment adviser has created a conflict of interest that must be disclosed to clients who receive the recommendation
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “An investment adviser has researched a privately held company and is extremely bullish on the company's prospects. She makes a personal ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
E24-3 (Segmented Reporting) Carlton Company is involved in four separate industries. The following information is available for each of the four industries.
Answers (1)
Write a report on a trend in business that you've observed, and highlight at least the main finding. For example, from the rising cost of textbooks to the online approach to course content, textbooks are a significant issue for students.
Answers (1)
Hundred thousand million billion trillion quadrillion then what
Answers (1)
How is performance management measured in your organisation? Your answer
Answers (1)
When economists say that money serves as a medium of exchange, they mean that it's A. A way to keep wealth in a readily spendable form for future use. B. Declared as legal tender by the government. C.
Answers (1)
New Questions in Business
If Bojana Tax Services' office supplies account balance on March 1 was $1,400, the company purchased $675 of supplies during the month, and a physical count of supplies on hand at the end of March indicated $1,250 unused, what is the amount of the
Answers (1)
During Burns Company's first year of operations, credit sales totaled $156,000 and collections on credit sales totaled $113,000. Burns estimates that bad debt losses will be 1.0% of credit sales.
Answers (1)
A rational decision maker takes an action only if the a. marginal benefit is greater than both the average cost and the marginal cost. b. marginal benefit is greater than the marginal cost. c. marginal benefit is less than the marginal cost. d.
Answers (1)
Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $110,500, and it estimates that 6% will be uncollectible. Required: 1.
Answers (1)
Which skills are most required for someone in Design? A) knowledge of building processes, knowledge of specialized tools, and knowledge of building laws B) drawing skills, creativity for new ideas, and ability to model large-scale building projects
Answers (1)