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Exam Code: CATF-001

Exam Name: Certified Agile Tester - Foundation (CATF)

Version: V15.35

Q & A: 208 Questions and Answers

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The allocation of shares in oversubscribed IPOs to investment managers for their personal account is a perk that is most clearly a violation of Standard ________.
A. IV (B.6) - Prohibition against Misrepresentation
B. II (B) - Professional Misconduct
C. None of these answers
D. IV (A.3) - Independence and Objectivity
E. IV (B.8) - Disclosure of Referral Fees
Answer: D
External sources may try to influence the investment process by offering analysts and portfolio managers a variety of perks. Corporations may be seeking expanded research coverage; issuers and underwriters may wish to promote new securities offerings; brokers typically want to increase commission business. The perks may include gifts, invitations to lavish functions, tickets and so on. One type of perk that has gained particular notoriety is the allocation of shares in oversubscribed IPOs to investment managers for their personal accounts. This practice is a violation under Standard IV (A.3).

Carrying can be broken down into which of the following three categories?
A. Item costs, transit costs, storage costs
B. Capital costs, storage costs, risk costs
C. Capital costs, ordering costs, risk costs
D. Training costs, storage costs, risk costs
Answer: D

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