Locke “The Fund’s portfolio received 50,000 shares of an initial public offering (IPO) on 1 April. On 15 May, 30,000 shares were removed at the current market price.”
Black “There was a problem with NGM’s IPO allocation algorithm. Initially, you were overallocated. When we discovered the error, your account was adjusted.”
Locke “Short-term interest should have been credited to the Fund for use of its cash to cover the trade. In any case, this was an IPO of a large international high-tech company. It was not an appropriate investment for the portfolio.”
With regard to the IPO share allocation, are both NGM’s method of trade correction on 15 May and Locke’s demand for a short-term interest credit, respectively, consistent with the CFA Institute Standards of Professional Conduct?
A Yes
B No, only the method of trade correction is consistent
C No, only the demand for a short-term interest credit is consistent
答案：C
