Ethical Considerations in Stock Trading

<p>Because it's done without the knowledge of the firm</p> Signup and view all the answers

<p>To increase her potential profit and take advantage of stock bargains.</p> Signup and view all the answers

<p>She is neglecting or compromising the level of service expected by her clients.</p> Signup and view all the answers

<p>To ensure that clients' accounts are not neglected or compromised.</p> Signup and view all the answers

<p>His occupation and firm were identified on the TV news.</p> Signup and view all the answers

<p>She quickly sold short 1,000 shares in her own account.</p> Signup and view all the answers

<p>To sell the entire position</p> Signup and view all the answers

<p>By trading on material, non-public information</p> Signup and view all the answers

<p>Frontrunning</p> Signup and view all the answers

<p>To regulate full service dealers' acceptance of non-recommended trades without a suitability obligation</p> Signup and view all the answers

<p>Obtain Policy 9A exemptions from suitability within a year of the implementation of the IDA rule</p> Signup and view all the answers

<p>They clearly label the accounts as 'order execution only' accounts or some variant thereof</p> Signup and view all the answers

<p>To allow full service dealers to execute client orders without incurring a suitability obligation</p> Signup and view all the answers

<p>Sharing a financial interest in an account with a client</p> Signup and view all the answers

<p>To ensure enough time to service clients properly</p> Signup and view all the answers

<p>In such a way as to avoid any real or apparent conflict of interest and be disclosed to the firm</p> Signup and view all the answers

<p>They should be conducted moderately and responsibly</p> Signup and view all the answers

<p>Establishing record keeping and supervisory systems, and ensuring all trades are marked as recommended</p> Signup and view all the answers

<p>Courts will generally hold that the IA owes a fiduciary duty to the client if investment advice and recommendations are provided to the client</p> Signup and view all the answers

<p>Providing sound advice and making recommendations based on the financial and personal status of the client</p> Signup and view all the answers

<p>A fiduciary duty if investment advice and recommendations are provided to the client and the client relies on such advice</p> Signup and view all the answers

<p>Recommend laying a charge against the offending party</p> Signup and view all the answers

<p>$5,000,000 fine and imprisonment for five years less a day</p> Signup and view all the answers

<p>Order the disgorgement of monies obtained as a result of noncompliance</p> Signup and view all the answers

<p>Engaging in acts that perpetrate a fraud</p> Signup and view all the answers

<p>The power to order repayment when investors lose money due to improper conduct</p> Signup and view all the answers

<p>Reprimands, fines, suspensions, or cancellation of registration</p> Signup and view all the answers

<p>Information about individuals who have faced disciplinary action since 1987</p> Signup and view all the answers

<p>Making misleading or untrue statements</p> Signup and view all the answers

<p>To prevent conflicts of interest and maintain professionalism.</p> Signup and view all the answers

<p>Losing personal funds and lacking time for client servicing.</p> Signup and view all the answers

<p>They should be conducted responsibly and moderately to avoid negative public image.</p> Signup and view all the answers

<p>Sharing a financial interest in an account with a client without disclosure.</p> Signup and view all the answers

<p>The interests of the client</p> Signup and view all the answers

<p>Use them only for the client’s purposes</p> Signup and view all the answers

<p>Take reasonable steps to ensure the information is complete and accurate</p> Signup and view all the answers

<p>Potential conflicts of interest</p> Signup and view all the answers

<p>Know Your Client</p> Signup and view all the answers

<p>To prioritize the interests of the investing public</p> Signup and view all the answers

<p>Reliance of the client on their advice</p> Signup and view all the answers

<p>Concern for the spirit and intent of the rules</p> Signup and view all the answers

<p>Conducting in a responsible and moderate manner</p> Signup and view all the answers

<p>Excessive trading losses will present a negative image to clients</p> Signup and view all the answers

<p>Sharing a financial interest in an account with a client</p> Signup and view all the answers

<p>Participating moderately and responsibly to avoid unfavourable public image</p> Signup and view all the answers

<p>Duty of care and suitability</p> Signup and view all the answers

<p>Having a fiduciary duty to the clients</p> Signup and view all the answers

<p>Protecting the interests of the investing public</p> Signup and view all the answers

<p>Concerning themselves with the spirit and intent of the rules</p> Signup and view all the answers

<p>They must be executed only by individuals who are registered and approved</p> Signup and view all the answers

<p>Securities should be distributed only if approved for distribution by the appropriate regulatory authority</p> Signup and view all the answers

<p>Business conduct should merit public respect and confidence</p> Signup and view all the answers

<p>Client orders must be entered only at the client's direction unless the account has been properly constituted as a discretionary or managed account pursuant to the applicable regulatory requirements</p> Signup and view all the answers

<p>Secondary trading</p> Signup and view all the answers

<p>Prospectus</p> Signup and view all the answers

<p>Secondary sale</p> Signup and view all the answers

<p>Filing of information concerning material changes</p> Signup and view all the answers

<p>Power to order repayment when investors lose money due to improper conduct</p> Signup and view all the answers

<p>Compensation for financial loss and reprimands</p> Signup and view all the answers

<p>Prohibition on making statements that are knowingly false or misleading</p> Signup and view all the answers

<p>A feature to provide information about individuals who faced disciplinary action</p> Signup and view all the answers

<p>Prohibition of Regulated Persons from impeding or obstructing a Market Regulator in an investigation</p> Signup and view all the answers

<p>Offering listing services to issuers</p> Signup and view all the answers

<p>Regulating Alternative Trading Systems (ATSs)</p> Signup and view all the answers

<p>To enhance the investigative and regulatory powers of Market Regulators</p> Signup and view all the answers

<p>To control funds without raising suspicion</p> Signup and view all the answers

<p>2-5%</p> Signup and view all the answers

<p>To limit access to funds generated from criminal activities</p> Signup and view all the answers

<p>$980 billion</p> Signup and view all the answers