Sofia is an investment advisor and wants to recommend a stock she happens to own.How should Sofia best deal with this potential conflict of interest?
A)She should not make the recommendation.
B)She should make a negative recommendation.
C)She should make a positive recommendation and then sell the stock.
D)She should disclose the fact that she owns the stock while making the recommendation.

Question

Quizplus · Accepted Answer

It is important for Sofia to disclose the fact that she owns the stock to avoid any potential conflicts of interest or unethical behavior. This allows the client to make an informed decision and also demonstrates transparency and honesty on Sofia's part as an investment advisor.

Sofia Is an Investment Advisor and Wants to Recommend a Stock