Ethical and Professional Standards Q137

0. Eli Sorkin, is a research analyst covering the electronics industry. One of the companies he follows closely is Canc Inc. as they often come up with innovative products. When they release a wireless printer, he thinks it is a breakthrough and after thorough research, strongly recommends the stock. A fortnight after the report is released, Sorkin inherits $1million worth of Canc stock from a distant uncle. Sorkin is asked to write a follow-up report on Canc. What is the least appropriate action for Sorkin to take?

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Option : B
Explanation : Sorkin must disclose his ownership of the Canc stock to his employer and in his follow-up report. But the best course of action to avoid any conflict of interest would be to ask his employer to assign the stock to another analyst. Refer to Standard VI(A) Disclosure of Conflicts.

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