Ethical Dilemma in Insider Trading

Medium Ethical Decision-making Professionalism

Jordan is a portfolio manager at a large investment firm and has recently been given access to sensitive proprietary information regarding a new technology being developed by a company in which his firm is heavily invested. Jordan is aware that the information is not yet public and that trading based on this information could be considered insider trading under the CFA Institute's Code of Ethics and Standards of Professional Conduct.

Despite this, Jordan is facing a personal financial issue that could be resolved if he acts on this information. He is contemplating whether to sell some of his firm's holdings in that stock before the information is made public to secure his personal finances.

Which of the following courses of action should Jordan take to uphold professionalism according to the CFA standards?

Jordan should proceed with selling the shares to resolve his financial problem, as it is his personal need.

Jordan should consult with his firm's legal and compliance department before making any trades.

Jordan can wait to sell after the information is made public to avoid any legal issues.

Hint

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