Conflicts of Interest in Personal Investments

Easy Professional Standards Application Conflicts Of Interest

Jordan is a CFA charterholder and works as a research analyst for a boutique investment firm. He is assigned to analyze the stock of a tech company that he has personal investments in. After conducting thorough research, he believes the stock is overvalued. Jordan struggles with whether to express his negative view on the stock in his research report, fearing that his judgment may be questioned given his personal stake in the company. What should Jordan do to adhere to the CFA Institute's standards regarding conflicts of interest?

Jordan should fully disclose his personal investments in the tech company in his research report.

Jordan should recuse himself from the analysis of the stock to avoid any potential bias.

Jordan can continue with his analysis as long as he believes he is objective in his judgment.

Hint

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