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NEW QUESTION: 3
Jamie Smith works for AMC Brokerage. He is in the process of releasing a research report on an advertising company called PLW. He recommends that his clients buy the share. Which of the following statements is not likely to result in a conflict or possible conflict situation?
A. Jamie's mother has a material shareholding in PLW.
B. Jamie plays soccer with the Marketing Director of PLW once a month.
C. Jamie is a personal friend of the CEO of PLW.
Answer: B
Explanation:
A member must disclose all his interests and possible conflicts to his clients and prospective clients. This would include:
Material share ownership.
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Market making activities.
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Corporate finance relationships.
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Directorships.
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Jamie's mother will be included with her large shareholding as this could lead to a possible conflict. The fact that Jamie plays soccer with the Marketing Director of PLW once a month is unlikely to result in a conflict of interest situation.


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