Material non public information employees, material, question, between

dkishore1

I got confused in one of the question about material non public information. I know information overheard from CEO, CFO or key people about the company is considered material non public. I also know that information from dentist and podiatrist is not considered material non public. How about if the conversation is between few former employees of the company? Is it considered material non public?

I am referencing question#12 from Morning session Schweser vol2 exam 2.

ramdabom

I would answer this as material non public. Former employees most likely have some type of insider information that would be a benefit for an investor.

mnieman

That's what I did and got trapped. In fact, even explanation doesn't mention anything about it.

studyn

I'm finding ethics to be sooo subjective. Its frustrating going through these. There's a million things i can assume or ask to clarify the question.

ajpheif16

Yeah man it's pain in the neck. Are rules supposed to be straight so that people can understand better rather getting confused with wordings and end up learning nothing? I don't understand what is the goal here..

spartanag07

I agree. What can you do... 1 more week of this mind f-ing and lets enjoy some beers!

chetan86

is it a former employee for long time or new former employee ? Because if the guys has left the company 2Y ago, I'm not sure the info he has is an insider info. Anyway he's no more part of the company legally, so he can't be consider insider and his info become a matter of opinion, as the one you can get from your dentist

ftwcfa

hmm.. btw, none of these details were there in the question..Thanks!