Violation of Research Objectivity Standards

Medium Research Objectivity Standards Personal Investments

Jayden is a senior equity analyst at an investment management firm. He has recently purchased shares of a company that he covers in his analysis and which is currently under his coverage. While writing a report to recommend this stock, he fails to disclose his personal investment in the company. Which of the following best describes Jayden's actions in relation to the CFA Institute's Research Objectivity Standards regarding Personal Investments?

Jayden's actions are acceptable as long as he believes in the investment's potential.

Jayden has violated the CFA Institute's standards by not disclosing his personal investment.

Jayden is permitted to own stock in a company he covers as long as he doesn't trade on non-public information.

Hint

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