Day: January 14, 2022

Recommended Procedures for Compliance Members or candidates should disclose special compensation arrangements with the employer that might conflict with client interests, such as bonuses based on short- term performance criteria, commissions, incentive fees, performance fees, and referral fees. If the Read More …

Understanding the Application of Loyalty, Prudence, and Care Standard III(A) establishes a minimum benchmark for the duties of loyalty, prudence, and care that are required of all members and candidates regardless of whether a legal fiduciary duty applies. Although fiduciary Read More …

Increase in consumer income leads to an upward shift in the budget line such that it remains parallel to the original one and vice versa. Income consumption curve is a locus of points of consumer equilibrium resulting when only the Read More …

To explain the concept of consumer equilibrium the price of the two commodities should be given as well as the customers‟ income so as to derive the budget line. Budget line is a curve or a line showing combination of Read More …

This school of thought is opposed to the law that utility is measurable through cardinal numbers. This school of thought maintains that customer behaviour can be explained in terms of preference so that customers need to state the commodity they Read More …

Recommended Procedures for Compliance Achieve Public Dissemination If a member or candidate determines that information is material, the member or candidate should make reasonable efforts to achieve public dissemination of the information. These efforts usually entail encouraging the issuing company Read More …

A consumer is in equilibrium position when he/she achieves maximum satisfaction out of the available resources. A consumer in an equilibrium position when he/she distributes expenditure on purchase of different goods in such a way that marginal utility of a Read More …

It touches on satisfaction other than a customer desire from consuming a particular commodity’s. The satisfaction the consumers derives from consumption of commodity is called utility. Average utility is the satisfactory per unit consumed on average. Marginal utility is the Read More …

INTEGRITY OF CAPITAL MARKETS What Is “Material” Information? Information is “material” if its disclosure would probably have an impact on the price of a security or if reasonable investors would want to know the information before making an investment decision. Read More …

Recommended Procedures for Compliance Factual Presentations Members and candidates can prevent unintentional misrepresentations of their qualifications or the services they or their firms provide if each member and candidate understands the limit of the firm’s or individual’s capabilities and the Read More …