Short Case Scenario 16-1

Essay

Short Case Scenario 16-1
Jessica is looking forward to a family reunion at the beach. She is the first in her family to have graduated from college. She started her studies at the local community college and transferred to a prestigious private college several hours from her family's home. Jessica's major in college was business administration with a concentration in finance.
As she approaches the beach house where her family will be staying, Jessica is glad that her days of being quizzed and tested are over. She is looking forward to an opportunity to relax and to put her brain on "pause." However, Jessica's family has other plans for her. Almost before she emerges from her car, the questions begin.
Jessica's great-aunt Irene is hoping for a little investment advice. Irene explains, "One of my CDs has recently matured and I'm hoping to roll it into an investment where I might make a little more interest. Your cousin Eddie has suggested that I invest in bonds, but I'm not sure what to think. You know, dear, Eddie's never been very bright and I'd be foolish to take his advice without a little more information.
-Before the day ends,Jessica has one more family member ask her for advice.Candy,who has always been the "black sheep" of the family,corners Jessica and pleads,"Jessica,help me.I'm in desperate need of your advice." Candy goes on to explain that she recently got news from a coworker that their company was about to announce a major new discovery.The coworker advised Candy that the stock price would skyrocket when the news became public.Candy hurried to the phone and asked her broker to buy 100 shares of stock in the company.Candy was initially delighted when the stock price rose sharply and she was able to sell her shares for a big profit.Now,Candy finds that there's discussion in the office that she may have broken the law.What should Jessica tell Candy?