Noah Aull Is an Investment Adviser Representative with Canto Investment

Noah Aull is an investment adviser representative with Canto Investment Advisers. A client has called and told Noah that he heard about a firm that had recently completed an IPO at a party he had attended that weekend and instructed Noah to purchase shares of the company, which was now trading on the OTC Bulletin Board. Noah did some research and felt the company was far too risky an investment for this client, so he did not execute the trade. This turned out to be fortunate for his client since the firm became insolvent within six months of its IPO. Has Noah done anything wrong?

A) Yes. Noah is guilty of misappropriation and could have his license revoked.
B) No. Noah did what he is hired to do-manage his clients' accounts to the best of his ability.
C) Yes. Noah is guilty of not following a client's instructions and could have his license revoked.
D) Yes. Noah is guilty of making an unauthorized transaction and could have his license revoked.

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