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An investment advisor buys 1000 shares of ABC common stock for his personal account. A short time later, the advisor buys 100,000 shares of ABC stock and allocates the shares to customer accounts that he manages. The investment advisor has acted:____________.

Respuesta :

Answer:

In the interest of clients

Explanation:

Remember an investment advisor provides guidance to clients in exchange for agreed fees. Because of this relationship the Investment advisor owe a fiduciary duty to clients; meaning they are madated to put the clients’ interests over their own.

In this scenario the investment advisor first buys 1000 shares of ABC common stock for his personal account.

Considering the clients interest first he buys shares of ABC stock that are greater than his worth 100,000 which he allocates to customer accounts.

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