One more Material Nonpublic Question! launching, research, increase, initial, manager

kseniaru

I’m a fund manager. I’ve done COMPREHENSIVE research about GM, and I like the share. I plan on buying the share tomorrow. Later today, at a restuarant, I overhear two GM executives talk about a new fast car that they are about to launch. The launching of this car will increase GMs profits.
Am I allowed to buy the share as planned? Does the fact that I now have MNP override my initial research?

pogo

I believe it won’t be a violation since you’ve done your due diligence. Doesn’t that tie into the Mosaic theory as well? I’m curious about it now too.

JRossSter

Mosaic only works for nonmaterial nonpublic. I think this would be a violation due to MNP. This is a slippery slope, so I would go with the conservative answer. Could be wrong.

joemoran

You know material nonpublic information. Even if you claim you “were going to buy it anyways”, people will think you traded based on the information and it will look bad on you, the profession, your mother, etc.
You need to make efforts to make the information public as soon as you can and wait for the market to react before doing anything.

scr879

Its OK to act as you are trading because of your research and not coz of that MNPinfo.
@99Canon  there is no need to make effort to make info public