A broker has transferred stock held in his own name in order to fill a request from a client and made a profit in doing so.Which of the following would a business law professor most likely indicate to be a valid statement with respect to these circumstances?

Question

Quizplus · Accepted Answer

The broker has a conflict of interest because he made a profit in transferring the stock held in his own name for a client's request. This requires disclosure and consent from the client as well as being in compliance with the broker's fiduciary duties.

A Broker Has Transferred Stock Held in His Own Name