Case Study on Sales Practices

Mr. and Ms. Jones are a couple, both 67 years old, who have worked hard and saved $1,000,000 for retirement, not including their home. They seek out a finanical advisor, Nedly, who recommends that the Joneses invest most or all of the savings in a fairly risky security related to the real estate business in the inner city of a major metropolitan area. Many similar investments in this particular city have not done well at all. The likelihood that the business will fail is substantial. In fact, Nedly's brother--in-law, is the prime person responsible for heading up this investment.

Submit a 250-300 word analysis that discuss the ethics of Nedley reco immending this investment. As part of your analysis, include 1) NASD rules; 2) unsuitability analysis of this investment for the Joneses; and 3) application of at least one (1) Daniels Fund Principle to this scenario.