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CFA Level 2
Ethical and Professional Standards

Ethical Decision-Making in Insider Information

Easy Professional Standards Application Ethical Decision-making

Tom is a junior analyst working in the equity research department of a financial services firm. He has been tasked with creating a report on a company that his firm is preparing to invest in. During his research, he discovers material non-public information regarding the company's upcoming acquisition that could significantly impact the company's stock price.

Tom is excited about the potential financial implications and realizes he could personally benefit if he trades on this information. However, he is aware of the ethical obligations he has under the CFA Institute's Code of Ethics and Standards of Professional Conduct.

What should Tom do in this situation?

Hint

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% Correct87%