Sunil Vaskar is an employee of Glamorgan, a reputable investment banking firm. Glamorgan is a major underwriter for an e

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Sunil Vaskar is an employee of Glamorgan, a reputable investment banking firm. Glamorgan is a major underwriter for an equity issued by a private firm, RaindropWaterworks. Sunil has accidentally discovered that the preliminary prospectus issued by Raindrop contains material overstatements about the scope of its businesses and future earning potential. Sunil:

A. must report his findings to his supervisor and consult his legal department.
B. must sever all connections with Glamorgan and dissociate himself from its activities.
C. need not do anything because the prospectus has been distributed and is, in any case, preliminary.
D. must report the case to the SEC since there has been a violation of laws governing equity issues.