Janet Was Employed as a Sales Representative for Esday,Inc

question 45

Multiple Choice

Janet was employed as a sales representative for Esday,Inc.An appreciative customer gave her a diamond bracelet for all her hard work on a complicated contract.Can Janet keep the bracelet?

• A)Yes.The bracelet was given to Janet personally and intended for her.
• B)Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the bracelet.
• C)No. An agent is not allowed under any circumstances to personally profit as a result of the agency relationship.
• D)No. The bracelet is regarded as an unfair trade practice and violates antitrust law.

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Definitions:

Short Sale

A transaction where an investor borrows a security and sells it on the open market, planning to buy it back later at a lower price.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to continuing holding the position.

Secondary Markets

Markets where investors buy and sell securities or assets from other investors, rather than from issuing companies directly.

Original Issue

The first issuance of a security or financial instrument to the public or to investors.