标题: BS ethics Q in my opinion [打印本页] 作者: Bad5shah 时间: 2013-3-30 20:29 标题: BS ethics Q in my opinion
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 unless it was arrived at through the “mosaic theory.”
C) not trade on the information.
Your answer: B was incorrect. The correct answer was A) make reasonable efforts to insure the information’s accuracy before recommending that others trade on the information.
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.作者: CFA4Techie 时间: 2013-3-30 20:29
Actually it couldn’t have been B because the Mosiac theory strictly applies to combining material public information with nonmaterial nonpublic information. The problem specifially states that the information is material nonpublic information. I would’ve expected the answer to be C…and still think that is the appropriate answer given Standard II (A)作者: OmarAdnan 时间: 2013-3-30 20:29
You guys realize it says “least” accurate, right? Answer A makes perfect sense, as you’re NEVER supposed to recommend that others trade on material nonpublic information, regardless of whether it is accurate.作者: tobeornottobe 时间: 2013-3-30 20:29
Whoops. There goes my eyes from staring at the computer screen for too long. I just bought one of these cool 13 inch notebooks but i guess they arent great for reading qs for hours on end. Good catch billy.
