Ethical Decision-Making in Investment Advice

Very Easy Professional Standards Application Ethical Decision-making

As a financial analyst, you are tasked with providing investment advice to your clients. One day, you receive a request from a friend who is interested in investing in a particular stock, which you believe is undervalued. You have access to non-public information regarding the company that could significantly affect its stock price.

According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, what is the most ethical course of action for you to take in this situation?

You should provide your friend with the non-public information to help him make a profitable investment.

You should inform your friend that the investment opportunity exists but refrain from sharing any non-public information.

You should advise your friend to find a different investment opportunity to avoid conflicts.

Hint

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