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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.

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上一主题:CFA Mock Morning session Ethics Q2
下一主题:General Ethics Question