Ethical Decision-Making in Capital Markets Integrity

Very Easy Ethical Decision-making Integrity Of Capital Markets

John is a portfolio manager for a large investment firm and has access to non-public information regarding an upcoming merger between two companies. He is aware that trading on this information could provide significant gains if executed prior to the public announcement. John knows that using this information for personal gain would violate the integrity of capital markets, which relies on the principle that all investors should have equal access to material information.

What should John do in this situation to uphold the integrity of capital markets?

John should trade on the non-public information because it will benefit his clients.

John must refrain from trading on the non-public information and disclose it to his compliance department.

John can share the non-public information with friends, as they do not work in the finance industry.

Hint

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