Sofia Is an Investment Advisor and Wants to Recommend a Stock

question 110

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 disclose the fact that she owns the stock while making the recommendation.
• D) She should make a positive recommendation and then sell the stock.

---

Definitions:

Litigation Process

The series of actions and procedures involved in taking a case through the courts, including filing lawsuits, discovery, trial, and possibly appeal.

Enforcement

The act of compelling compliance with laws, regulations, or standards.

Speedier Method

A more efficient and rapid process or technique to achieve a certain objective or outcome.

Confidentiality

The requirement to keep certain information secret or private, often seen in professional or contractual relationships.