Laws & RegulationsCâu 4 / 100
An investment adviser representative learns material nonpublic information about a public company from a client who is a corporate insider. The IAR then buys the stock for personal gain. This conduct is best described as:
a.A permitted use of client-provided research
b.An exempt transaction because it was unsolicited
c.Acceptable if the IAR discloses it in the next ADV update
d.A prohibited practice constituting insider trading
Giải thích
Trading on material nonpublic information is prohibited regardless of how the information was obtained. No disclosure or exemption cures the violation. The IAR breached both securities law and fiduciary duty by placing personal interest ahead of the duty to the market and clients.
Trích dẫn luật: Uniform Securities ActLuyện miễn phí toàn bộ 100 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Under the Uniform Securities Act, what is the correct order of registration for a security using the coordination method?
- An agent registered in State A takes an unsolicited order from a client who is vacationing in State B, where the agent is not registered. Which statement is most accurate?
- Which of the following is considered an exempt SECURITY under the Uniform Securities Act?
- Under the Uniform Securities Act, which person would MOST likely need to register as an agent?
- Which of the following professionals would most likely qualify for the exclusion from the definition of investment adviser because advice is incidental to their practice and no special compensation is received?
- A federal covered investment adviser with clients in five states is generally subject to registration and oversight primarily by:
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