Sofia Is an Investment Advisor and Wants to Recommend a Stock

question 97

Multiple Choice

Sofia is an investment advisor and wants to recommend a stock she happens to own.How should Sofia best deal with this potential conflict of interest?

• A)She should not make the recommendation.
• B)She should make a negative recommendation.
• C)She should make a positive recommendation and then sell the stock.
• D)She should disclose the fact that she owns the stock while making the recommendation.

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Definitions:

Preceptor

A preceptor is an experienced practitioner or faculty member who supervises and guides students or less experienced workers in a practical, hands-on learning environment.

Instructor

An individual who provides education or training, often within an academic or skills-based setting.

Training Site

A designated place where individuals receive instruction and practice in a particular skill or profession under supervision.

Employee

An individual who is hired by an employer to perform designated tasks in exchange for compensation.