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D. vPC
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NEW QUESTION: 3
Ms. Ears is an investment adviser representative. During lunch today, she overheard two men talking
about a hostile takeover that their firm was preparing to undertake. Based on this information, Ms. Ears
does not hesitate to advise the client she meets with immediately after lunch-Mrs. Clueless-- to invest a
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recommendation based on that information.
D. No. The scenario does not suggest that Ms. Ears herself made any investment in the target firm, and
Mrs. Clueless was not made aware of the basis for Ms. Ears' recommendation.
Answer: B
Explanation:
Yes. In making a recommendation based on overhearing news of an upcoming hostile
takeover-- information that was not publicly available--Ms. Ears has violated insider trading laws and is
subject to both civil and criminal penalties. The men, although guilty of indiscretion in their conversation,
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Aalk - 2014-05-05 16:45:18
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