Glafira is an investment advisor and wants to recommend a stock she happens to own.How should Glafira 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

Glafira should disclose the fact that she owns the stock while making the recommendation. It is important to be transparent with potential conflicts of interest and disclosing ownership can provide clients with the necessary information to make an informed decision. This also allows for clients to ask follow-up questions and discuss any concerns they may have.

Glafira Is an Investment Advisor and Wants to Recommend a Stock