Question #1
Reading: Reading 42.2 Standards of Professional Conduct Guidance for Standards II
PDF File: Reading 42.2 Standards of Professional Conduct Guidance for Standards II.pdf
Page: 1
Status: Correct
Correct Answer: B
Question
Which of the following statements regarding Standard II(A), Material, Nonpublic Information, is least accurate?
Answer Choices:
A. If you receive the information in a public forum, it has been disseminated, and you can trade on it
B. Material, non-public information regarding a tender offer may not be traded on
C. Information received from an insider who is not breaching his fiduciary responsibility may be traded on
Explanation
If the information is material and nonpublic, the Member or Candidate cannot trade or
cause others to trade. It does not matter if the insider did not breach his fiduciary
responsibility. The inside information is still material and nonpublic.
(Module 42.3, LOS 42: II(A))