Carmina Aburana is a sales assistant to Drew Door, a sales manager at Hicost Brokerage. Hicost has a policy of requiring at least 20% margin on stocks that are deemed illiquid or extremely risky. For these purposes, it creates and updates a list of such stocks on a weekly basis. Yoddly Yoo, Inc. is an up and coming internet firm whose stock has been on this list for some time now. One of Carmina's "blue chip" clients, Amadeus, has been speculating on Yoddly's stock for the past two weeks, repeatedly going in and out of the market. In this process, he has unfortunately generated significant losses and his margin on the account has fallen to 12%. To make up for the shortfall, Amadeus calls up Carmina and requests a "borrowing on the account" of 10% for the next 2 weeks, promising to pay a hefty interest rate of 38%on an annualized basis. Since Amadeus has never been in default, Carmina agrees to the arrangement and moves some funds from another client's account. There is no explicit rule at Hicost that prohibits such an arrangement, though it is clearly an oversight on part of the Compliance department. Drew notices this transaction and calls Carmina for an explanation. On hearing the explanation, he tells Carmina that such arrangements are in violation of the company rules and should not be repeated. After 2 weeks, Amadeus supplies the necessary margin for his account.
Answer(s): B
Carmina has shown poor judgment in not recognizing the spirit behind Hicost's 20% margin requirement.However, in the absence of any explicit rule in this about fund transfers, she can make a case that she is not in violation of any laws or code of conduct. Drew, on the other hand, has been negligent in his duties. If he understands the import of the margin rule, then he must take steps to unwind the effects of the infraction as soon as possible. In this case, he should have directed Carmina to terminate the arrangement with Amadeus and require that the requisite margin be posted immediately. Further, verbal admonitions are not enough to satisfy supervisory duties when handling a supposed violation of rules. Drew must determine how best to prevent such occurrences in the future and also discuss with the Compliance Department the need for revising the employee rules handbook.
Susan Jackson, with HRS Investments, is appearing in court as an expert witness. She will have to use research done at HRS, to which she did not contribute directly, during her testimony. Which of the following is true, in relation to Jackson's need to comply with Standard II (C)?
Answer(s): C
Expert witnesses represent themselves, not organizations. Thus, Susan must attribute any of HRS's research to HRS and the team that conducted the research.
Which of the following AIMR Standards states that additional compensation agreements must be disclosed to the employer?
Standard III (D) - Disclosure of Additional Compensation Arrangements states: "Members shall disclose to their employer in writing all monetary compensation or other benefits that they receive for their services that are in addition to compensation or benefits conferred by a member's employer."
When an analyst reaches conclusions about a firm's impending announcements before the actual release of information, using non-material, non-public information in conjunction with public information, insider trading charges cannot be leveled against her. This arises from a legal defense against insider trading charges knownas:
Answer(s): D
Insider trading charges arise only when the inside information used is material and non-public. Analysts who use non-material inside information in conjunction with publicly available data to draw conclusions which happen to be the same as those that would be derived given material inside information are shielded from insider trading charges under the "Mosaic Theory." The logic behind the defense is that investment analysts are exposed to a wide variety of public information (i.e., a "mosaic of information") and already have a good idea about what the information means. Further, the inside information, when non-material, cannot (by definition) have been the primary shaper of the final conclusions. Hence, the possession of the inside information makes only marginal contribution to the conclusions and as such, should not trigger insider trading violations.
Smith, a research analyst with a brokerage firm, decides to change his recommendation on the common stock of Green company, Inc., from a buy to a sell. He mails this change in investment advice to all the firm's clients on Wednesday. The day after the mailing, a client calls with a buy for 500 shares of Green Company. In this circumstance, Smith should:
Under Standard IV (B.3), investment recommendations must be disseminated to all clients at the same time, so that all clients are treated fairly. The client's request is contrary to Smith's latest recommendation which he has not yet received. Smith must now make sure that the client receives the changed recommendation. If the client still wants to place a buy order for the shares, only then is Smith obligated to comply with the client's directive.
Share your comments for Financial CFA Level 1 exam with other users:
is this dump still valid? today is 9-july-2023
i need this exam.. please upload these are really helpful
please upload the oracle 1z0-1059-22 dumps
very good questions
nice, first step to exams
is this valid for chfiv9 as well... as i am reker 3rd time...
great exam for people taking 220-1101
this is very helpfull for me
just started preparing for the exam
these are the type of questions i need.
does this actually work? are they the exam questions and answers word for word?
thanks for providing these questions
interesting
these dumps are pretty good.
good questions
dbua is used for upgrading oracle database
i am thrilled to say that i passed my amazon web services mls-c01 exam, thanks to study materials. they were comprehensive and well-structured, making my preparation efficient.
please upload latest ibm ace c1000-056 dumps
if only explanations were provided...
yes .. i need the dump if you can help me
good morning, could you please upload this exam again?
hi please upload sre foundation and practitioner exam questions
the exam is listed as 80 questions with a pass mark of 70%, how is your 50 questions related?
all questions are so important and covers all ccna modules
q 44. ans:- b (goto setup > order settings > select enable optional price books for orders) reference link --> https://resources.docs.salesforce.com/latest/latest/en-us/sfdc/pdf/sfom_impl_b2b_b2b2c.pdf(decide whether you want to enable the optional price books feature. if so, select enable optional price books for orders. you can use orders in salesforce while managing price books in an external platform. if you’re using d2c commerce, you must select enable optional price books for orders.)
"cost of replacing data if it were lost" is also correct.
pls upload the questions
question 182 - correct answer is d. ethernet frame length is 64 - 1518b. length of user data containing is that frame: 46 - 1500b.
i need this exam pls
its required for me, please make it enable to access. thanks
seems good..
took the test last week, i did have about 15 - 20 word for word from this site on the test. (only was able to cram 600 of the questions from this site so maybe more were there i didnt review) had 4 labs, bgp, lacp, vrf with tunnels and actually had to skip a lab due to time. lots of automation syntax questions.
no comments