Question on Fair Dealing in Client Relationships

According to the CFA Institute Code of Ethics and Standards of Professional Conduct, members and candidates have a duty of fair dealing with clients and prospective clients. This means they must seek to ensure that all clients are treated fairly when it comes to investment opportunities and recommendations.

As a charterholder, you have come across a situation where you believe you have an investment opportunity that will benefit your clients. However, you notice that you have only a limited number of shares in this investment. Which of the following actions would constitute a violation of the duty of fair dealing?