1、Which of the following statements regarding Standard II(A), Material, Nonpublic Information, is least accurate?

A)   Information received from an insider who is not breaching his fiduciary responsibility may be traded on.

B)   Material, non-public information regarding a tender offer may not be traded on.

C)   If you receive the information in a public forum, it has been disseminated, and you can trade on it.

D)   If you figure the information via deductive reasoning, via the mosaic theory, you can use it.

2、Andrea Waters is an investment analyst who has accumulated and analyzed several pieces of nonpublic information through her contacts with drug firms. Although no one piece of the information she collected is "material," Waters correctly concluded that the earnings of one of the drug companies would be unexpectedly high in the coming year. According to CFA Institute Standards of Professional Conduct, Waters:

A)   cannot legally invest or make recommendations based on this information.

B)   should urge the drug firm to make public dissemination of the information immediately.

C)   can use the information to make investment recommendations and decisions.

D)   may use the information, but only after approval from a compliance officer or supervisor.

3、The term "material" in the phrase "material nonpublic information" refers to information that is likely to affect significantly the market price of the issuing company's securities or that:

A)   is derived by the financial analyst from direct communication with an issuing company's management.

B)   is likely to preclude the financial analyst or analyst's firm from rendering unbiased or objective advice.

C)   is acquired by the financial analyst from a special or confidential relationship with the issuing company.

D)   is likely to be considered important by reasonable investors in determining whether to trade a particular security.

4、According to CFA Institute Standards of Professional Conduct, which of the following statements about material nonpublic information is FALSE? Information is:

A)   nonpublic until it has been disseminated to a select group of investors.

B)   nonpublic until it has been disseminated to the marketplace in general.

C)   material if its disclosure would be likely to have an impact on the price of a security.

D)   material if reasonable investors would want to know the information before making an investment decision.

5、According to Standard II(A), prohibition against the use of material nonpublic information, which of the following statements is least accurate? Members who possess material nonpublic information related to the value of a security are expected to:

A)   make reasonable efforts to insure the information's accuracy before recommending that others trade on the information.

B)   not trade on the information.

C)   not trade on the information unless it was arrived at through the "mosaic theory."

D)   make reasonable efforts to achieve public dissemination of the information.

答案和详解如下：

1、Which of the following statements regarding Standard II(A), Material, Nonpublic Information, is least accurate?

A)   Information received from an insider who is not breaching his fiduciary responsibility may be traded on.

B)   Material, non-public information regarding a tender offer may not be traded on.

C)   If you receive the information in a public forum, it has been disseminated, and you can trade on it.

D)   If you figure the information via deductive reasoning, via the mosaic theory, you can use it.

The correct answer was A)

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.

2、Andrea Waters is an investment analyst who has accumulated and analyzed several pieces of nonpublic information through her contacts with drug firms. Although no one piece of the information she collected is "material," Waters correctly concluded that the earnings of one of the drug companies would be unexpectedly high in the coming year. According to CFA Institute Standards of Professional Conduct, Waters:

A)   cannot legally invest or make recommendations based on this information.

B)   should urge the drug firm to make public dissemination of the information immediately.

C)   can use the information to make investment recommendations and decisions.

D)   may use the information, but only after approval from a compliance officer or supervisor.

The correct answer was C)    

Members who can piece together items of nonmaterial nonpublic information with public information can, based upon the mosaic theory, use such information for trading purposes.

3、The term "material" in the phrase "material nonpublic information" refers to information that is likely to affect significantly the market price of the issuing company's securities or that:

A)   is derived by the financial analyst from direct communication with an issuing company's management.

B)   is likely to preclude the financial analyst or analyst's firm from rendering unbiased or objective advice.

C)   is acquired by the financial analyst from a special or confidential relationship with the issuing company.

D)   is likely to be considered important by reasonable investors in determining whether to trade a particular security.

The correct answer was D)

An item of information is material if its disclosure would be likely to have an impact on the price of a security, or if reasonable investors would want to know the information before investing.

4、According to CFA Institute Standards of Professional Conduct, which of the following statements about material nonpublic information is FALSE? Information is:

A)   nonpublic until it has been disseminated to a select group of investors.

B)   nonpublic until it has been disseminated to the marketplace in general.

C)   material if its disclosure would be likely to have an impact on the price of a security.

D)   material if reasonable investors would want to know the information before making an investment decision.

The correct answer was A)    

Standard II(A), Material Nonpublic Information, states that information is “nonpublic” until it has been disseminated to the marketplace in general as opposed to a select group of investors.

5、According to Standard II(A), prohibition against the use of material nonpublic information, which of the following statements is least accurate? Members who possess material nonpublic information related to the value of a security are expected to:

A)   make reasonable efforts to insure the information's accuracy before recommending that others trade on the information.

B)   not trade on the information.

C)   not trade on the information unless it was arrived at through the "mosaic theory."

D)   make reasonable efforts to achieve public dissemination of the information.

The correct answer was A)

Standard II(A), regarding material nonpublic information, prohibits those possessing material nonpublic information from trading or causing others to trade on that information. Members or candidates should make reasonable efforts to make sure the information is disseminated to the public. Trading based on the mosaic theory is acceptable because this is based on the analysis of public and nonmaterial nonpublic information.