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Exam Code: FPA_II

Exam Name: Certified Corporate Financial Planning & Analysis Professional Part II

Certification Provider: AFP

Related Certification: Certified Corporate Financial Planning & Analysis Professional Part II

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NEW QUESTION: 1
Noah Scruples, an agent with CanDo Broker-Dealers, just got a copy of the most recent report on a
certain stock. The report was generated by CanDo's analyst department and is hot off the presses. It has
not yet even been put on the firm's website for the firm's clients.
The analyst department has just changed its recommendation on the stock from "Hold" to "Strong Buy"
based on new information that it has obtained on the company. Can Noah
rush to his office to buy shares of the stock before the analysts release their reports to CanDo's clients?
A. No. It is unethical for him to trade based on this information before the firm's clients have received the
information.
B. Both B and C are true statements.
C. Yes. The firm's analysts used publicly available information to assess the stock and make its
recommendation, so Noah can buy the stock now on his own account.
D. No. This is a prohibited activity referred to as "painting the tape."
Answer: A
Explanation:
No. It is unethical for him to trade based on the information that just came from the analysts
before the firm's clients have the information. This is a prohibited practice called "front running."

NEW QUESTION: 2
HOTSPOT


Answer:
Explanation:



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