Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Connect with a community of experts ready to provide precise solutions to your questions quickly and accurately. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

An investment adviser has researched a promising company and has decided to buy its stock for its proprietary account and for the account of each of the firm's clients. Which action on the part of the adviser is acceptable

Sagot :

gurleendoel16

Answer:

The investment adviser first buys the shares for its customer accounts and then places the order necessary to buy the shares for its proprietary account 

Explanation:

Since buying a large position for the adviser's customers might tend to push the price of the stock up, the adviser cannot benefit from this by "front running" the customer orders by placing an order to buy the stock for its proprietary account just before placing the big customer orders to buy. The best procedure is to buy the stock for the customers first and then for the adviser's proprietary account. Remember that the adviser is a fiduciary who must place his clients' interests first.

We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.