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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If a runner goes 0.5Km with an average speed of 7.0m/s. what was their time?
Answers (1)
What are the seven common characteristics of risk
Answers (1)
Which of the following statements about property dividends is not true? a. A property dividend is usually in the form of securities of other companies. b. A property dividend is also called a dividend in kind. c.
Answers (1)
On December 15, 2021, Lima Lighting Co. sold a tract of land that cost $3,600,000 for $4,500,000. Lima appropriately uses the installment sales method of accounting for this transaction.
Answers (1)
in g Management of a local catering company would like the Food Division to transfer 10,000 containers of its final product to the Restaurant Division for $41.00. The Food Division sells the product to customers for $98.00 per unit.
Answers (1)
New Questions in Business
Suppose that you are the treasurer of IBM with an extra US$1,000,000 to invest for six months. You are considering the purchase of U. S. T-bills that yield 1.
Answers (1)
13. Where do you find the amount when writing a check to Payroll?
Answers (1)
what marginal costs and benefits might a tour boat operator consider when deciding whether to purchase a new boat?
Answers (1)
Sarah has just been made a member of the bar and is going to open her own law office. you will be her first employee! what advice can you give her about professional liability insurance.
Answers (1)
Suppose bundle A contains 5 CDs and 5 DVDs and bundle B contains 2 CDs and 6 DVDs. If a consumer is able to rank different combinations of goods and services in terms of how much utility they provide, then A) the consumer will prefer bundle B to
Answers (1)