Market Manipulation and Ethical Standards

Easy Cfa Institute Code And Standards Integrity - Market Manipulation

Amy is a portfolio manager who has noticed a significant increase in the trading volume of a stock that her firm is heavily invested in. During her monthly team meeting, Amy suggests that the team should promote rumors regarding positive developments related to the company to further boost interest and drive the stock price up.

Which of the following best describes Amy's suggestion in terms of market manipulation?

Amy's suggestion is acceptable as long as there are some positive developments to discuss.

Amy's suggestion constitutes market manipulation as it involves spreading false information to influence the stock price.

Amy's suggestion is ethical if it is based on her genuine belief that the rumors will eventually reflect reality.

Hint

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