QUESTIONS 1 THROUGH 18 RELATE TO ETHICAL AND PROFESSIONAL STANDARDS.

8. As the Managing Director of a commercial bank, a CFA charterholder sat in on a

board meeting of a publicly listed company that the bank had lent a large sum of

money. The purpose of the board meeting was to renegotiate the terms of the

commercial loan due to the pending restructuring of the company. The next day

all of the Managing Director’s shares of the publicly listed company are sold on

the stock exchange, the sell order having been given two days prior to the

meeting. According to the Standards of Practice Handbook, the CFA

charterholder was least likely in violation of which CFA Institute Standards of

Professional Conduct?

A. Disclosure of Conflicts.

B. Priority of Transactions.

C. Material Nonpublic Information.