Danielle Smith is a representative for Fairfax Securities.

Danielle Smith is a representative for Fairfax Securities. She has contacted Willard Mangan, one of her clients, concerning her recommendation that Mangan invest in 20-year bonds that will be issued by Continental Telephone, Inc. She informs Mangan that:

  • Continental Telephone is the strongest company in its industry.
  • Continental Telephone has an extremely strong credit rating.
  • Based on these factors, “payment of these obligations is assured…it’s like a government bond with a corporate interest rate.”

A. not violated the Standards if her statements were made verbally and not in writing

B. not violated the Standards because her statements cannot be disproven

C. violated the Standards by implying that eventual payment of the bonds was assured

D. violated the Standards by attempting to persuade Mangan that Continental Telephone was a strong company and by implying that eventual payment of the bonds was assured

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