Victor is the chief financial officer of ProQuery, a biotech lab that researches, develops, and commercializes pharmaceutical drugs for women's health issues. ProQuery submits a new drug application to government regulators for a promising new drug for treating hormone deficiency. Two meetings scheduled with regulators to discuss the drug are postponed when the regulator states that unspecified deficiencies with the drug make such discussions premature. The public announcement of each meeting postponement results in a decline of more than 8% in the company stock. When the meeting between regulators and company executives finally happens, ProQuery presents yet-to-be published preliminary test data with favourable indicators for the drug. The regulators react positively and give ProQuery preliminary regulatory approval contingent on further studies. After the meeting, six sell-side research analysts covering ProQuery inquire with Victor about the meeting. Victor responds by email and indicates that he believes the meeting with regulators was "very positive and productive" and that the company was "pleasantly surprised" by the reaction of the regulators. Victor does not share the favourable preliminary test data with the analysts. After the emails to the analysts, the stock price of the company increases 22%. 

Victor's actions are (Choose the best answer.) (No answer given) 

appropriate because CFO does not share the unpublished preliminary test data with the analysts but restricts his comments to the general tenor of the meeting. 

appropriate because CFO responds to questions from research analysts covering the company. 

appropriate because CFO communicates with all six research analysts covering the company. 

inappropriate

Answer rating: 100% (QA)

The detailed answer for the above question is provided below This situation presents several ethical and legal considerations for Victor as CFO of Pro... View the full answer