Change of Recommendation from Sell to Buy | CFA® Level 1 Exam | Test Prep

Change of Recommendation from "Sell" to "Buy"

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Question

When complying with Standard IV (B.3) - Fair Dealing, a change of recommendation from "sell" to "buy" is considered:

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A. B. C. D. E.

E

In general, a material change in a firm's recommendation is one that could be expected to affect the investor's judgment or motivate an informed buyer or seller to take an investment action. Hence, a change of recommendation from "sell" to "buy" is generally material.