16、A CFO who is a CFA Institute member is careful to make his press releases—some of them containing material and previously undisclosed information—clear and understandable to his readers. While writing a new release, he often has his current intern proofread rough drafts. He also sends electronic copies to his brother, an English teacher, to get suggestions concerning style and grammar. With respect to Standard II(A), Material Nonpublic Information, the CFO is: A) not in violation of the Standard. B) only in violation by showing the pre-release version to the intern but not to a relative such as his brother. C) only in violation by e-mailing the pre-release version to his brother but not the intern, because the intern is in essence an employee of the firm. D) violating the standard by either showing the pre-release version to his intern or sending it to his brother. The correct answer was D) Standard II(A), Material Nonpublic Information, says that a member must be careful about handling material non-public information. As a member of CFA Institute, the CFO must limit the people who see important information before it is released. It would not be appropriate to involve an intern or a relative in the process. 17、Which one of the following constitutes the illegal use of material nonpublic information? A) Trading based on your analytical review of the firm's future prospects. B) Trading on information your sister, the firm's attorney, told you over dinner. C) Trading immediately after attending the firm's annual shareholders’ meeting. D) Trading on overheard remarks made by an unreliable source at a cocktail party. The correct answer was B) Members may not trade on material nonpublic information; therefore, the information conveyed by the firm’s attorney may not be used by a member for trading purposes. 18、Regarding non-public information, which one of the following statements is FALSE? A) Disclosing material non-public information would have an impact on the price of a security or be of interest to a reasonable investor. B) An analyst may use some types of non-public information. C) A member can be summarily suspended for having received material non-public information. D) Information that has been disseminated to a few select individuals is still non-public. The correct answer was C) All of these are true except that a member can be suspended for having received material non-public information. The member can receive such information as part of their regular duties or by accident. Neither is punishable in and of itself, and penalties only apply if the member trades or causes others to trade on the information. The member may have certain duties, such as trying to disseminate the information after receiving it. An analyst may use nonmaterial non-public information. 19、A brokerage firm has a trading department and an investment-banking department. Often the investment-banking department receives material non-public information that would be valuable in advising the firm’s brokerage clients. In order to comply with the Standards, the firm: A) should record the exchange of information between the investment-banking department and the brokerage department. B) must divest one of the departments. C) should restrict employee trading in securities for which the firm is in possession of material non-public information. D) must liquidate the stocks of companies for which the brokerage has material non-public information. The correct answer was C) Restricting employee trading in stocks for which the firm has material non-public information is the best answer. Recording the exchange of information between the two departments is not the best option because there should be no exchange of information between these two departments. The other two answers, divesting a department or liquidating stocks of clients, are not suitable methods for addressing this potential problem. 20、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) can use the information to make investment recommendations and decisions. C) should urge the drug firm to make public dissemination of the information immediately. D) may use the information, but only after approval from a compliance officer or supervisor. The correct answer was B) 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. | 
发表于 2008-4-18 16:05
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