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5.Tonya Tucker,CFA,is a financial analyst at BC Corporation (BC).BC has numerous subsidiaries and is actively involved in mergers and acquisitions.Tucker analyzes HR Corporation (HR) and tells the CEO of BC that the acquisition of HR would be a good fit for BC.After he discussion with the CEO,Tucker pruchases 100,000 shares of HR at $200 per share.BC does not have any pre-clearance procedures,so the next time she meets the CEO,Tucker mentions she is a stockowner of HR.The CEO thanks her for this information but does not ask for any details.Two weeks later,Tucker sees a company-wide email from the CEO announcing BC's acquisition of HR for $250 a share.Regarding her purchase of HR stock,Tucker most likely violated the CFA Institute Standards of Professional Conduct concerning: A.Loyalty. B.Market Manipulation. C.Material Nonpublic Information. |
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