Conflicts of Interest in Personal Trading

Easy Cfa Institute Code And Standards Conflicts - Priority Of Transactions

As a financial analyst at a large investment firm, you manage a portfolio of stocks. You recently executed a trade for a client to purchase shares in Company X. After this trade, you realize that you also have an open position in Company X's shares in your personal portfolio. According to the CFA Institute Code of Ethics and Standards of Professional Conduct, what is the most appropriate course of action regarding your personal holdings?

Liquidate your personal shares in Company X immediately to avoid any potential conflict of interest.

Continue holding your shares in Company X since the personal investment is separate from your client’s transactions.

Wait until the next quarterly reporting period to decide on the future of your personal shares.

Hint

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