An officer of a firm that is a majority owner in a competing firm will probably be subject to

Question

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The officer's position in a competing firm may create a conflict of interest with the majority shareholders of his own firm, as his decisions in one firm may negatively impact the other. It is important for officers to disclose any potential conflicts of interest and avoid engaging in activities that may compromise their duty to act in the best interest of their own firm's shareholders. The other options (IRS audit, arbitrage profit returns to the SEC, FBI investigation) are not necessarily related to the officer's position in a competing firm.

An Officer of a Firm That Is a Majority Owner