Elements of the fais act

Assignment Help Finance Basics
Reference no: EM133000193

Themba and Brian are friends. Themba is a self-employed financial advisor who manages the finances of a small group of clients. Brian, on the other hand, works at an investment company and is a financial services provider representative. During a game of pool, Brian shares with Themba that in the next few weeks, there will be a public announcement regarding a new company listing. He then suggests that Themba consider investing in this company now as he could make quite a nice profit once the company lists. Themba then uses this information to advice his clients regarding their financial portfolios.

Questions:

1. Comment on Themba's actions. Is he allowed to use this information? Motivate your answer

2. List at least two elements of the FAIS Act that this case scenario goes against

Reference no: EM133000193

Questions Cloud

Explain the short-sold bond portfolio : A bond portfolio manager has received information not yet disclosed in the market that the central bank will in the next week's meeting lower the interest rates
What is the fair market value of debbie : Debbie gave Linda one share of publicly traded Goody Company stock on December 11, a Thursday. During the week of the gift, the stock traded as follows:
How much cash did flaxseed receive from the bond issuance : The bonds are dated January 1, 2021 to mature on January 1, 2031. Interest is payable semi-annually. From the bond issuance, how much cash did FLAXSEED receive?
Find the pv and fv of a rolls royce cullinan : Find the PV and FV of a Rolls Royce cullinan. The interest rate at 3.99% Initial cost / current cost of the RR Cullinan 2021 is 2,590,000 AED
Elements of the fais act : Themba and Brian are friends. Themba is a self-employed financial advisor who manages the finances of a small group of clients. Brian, on the other hand, works
What is the net income before bonus and tax for sesame-seed : The income tax rate is 30%. The senior managers received ?250,000 for the current year as bonus. What is the net income before bonus and tax?
Expected return on a portfolio with a beta : Consider a single factor APT. Portfolio A has a beta of 1.5 and an expected return of 11%. Portfolio B has a beta of 0.5 and an expected return of 5%.
What amount of gain be recognized in profit for chia-seed : The bonds have a five-year term, What amount of gain or loss should be recognized in profit or loss for 2021 to conform with the fair value option?
Systematic risk becomes relevant in overall risk : Using three assets P, Q, and S, mathematically prove that unlike portfolio return, portfolio risk is not the weighted average risk of individual assets.

Reviews

Write a Review

Finance Basics Questions & Answers

  Shares must the firm sell to net $20 million

The underwriters' compensation will be 5 percent of the issue price, so Beranek will net $20.90 per share. The firm will also incur expenses in the amount of $150,000. How many shares must the firm sell to net $20 million after underwriting and flota..

  Plans an investment with an investment amount

Guntas Inc. plans an investment with an investment amount of TL 850.000. The cost of liabilities used by the company

  Announced that future dividends

Three Corners Markets paid an annual dividend of $1.37 a share last month. Today, the company announced that future dividends will be increasing by 2.8 percent annually. If you require a return of 11.6 percent, how much are you willing to pay to p..

  Find the risk expected return and required return rs of

investor smith is determining whether to invest in pacific pools corp. swimming-r-us corp.smith believes that putting

  What factors made most of the leveraged buyout

What factors made most of the Leveraged Buyout of the early and mid-1980s successful?

  Computation of growth rate and value per share

Computation of growth rate and value per share and The chairman of Heller Industries told a meeting of financial analysts that he expects the firm's earnings and dividends to double over the next six years

  What would be the interest of the loan

What would be the interest of the loan, if the loan amount is $1,000 at 5% simple interest for 3 years?

  What was the firm given year operating cash flow

The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.4 million, and the 2015 balance sheet showed long-term debt of $5.6 million

  Discussion on the scenarios

When the 56 year old organizer of Gulf & Western, Corporation died of a heart attack, the stock price immediately jumped from $18.00 a share to $20.25, a 12.5 percent increase.

  Minimum wage to be economically inefficient

Is it possible for the minimum wage to be economically inefficient? Explain. Use supply and demand analysis.

  Compute the amounts that would complete the table

Compute total expense over the five-year period under the two methods and comment.

  What is the bond expected rate of return

(Bondholders' expected rate of return) You own a bond that has a par value of $1,000 and matures in 5 years. It pays a 5 percent annual coupon rate.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd