Reading 2-II: Standards of Professional Conduct & Guid

答案和详解如下：

16、A stockbroker who is a CFA Institute member is called on the telephone by the CEO of a large company. The CEO asks to buy shares of the CEO’s company for the accounts of the CEO’s children. In the course of the conversation, the CEO says this will really pay off when the upcoming takeover goes through. The stockbroker checks her sources and finds no information about the takeover. In this case the broker should:

A)   only execute the order in compliance with Standard III(A), Loyalty, Prudence, and Care. Since the client is buying the stock for the children, there is not a problem.

B)   execute the order for all clients as required by Standard III(B), Fair Dealing.

C)   first execute the trade for the children and then use public information to recommend the stock to other clients.

D)   do none of the actions listed here.

The correct answer was D)

Doing any of these actions would be a violation of Standard II(A), Material Nonpublic Information. Members and Candidates must not act or induce others to act on material nonpublic information.

17、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)   violating the standard by either showing the pre-release version to his intern or sending it to his brother.

C)   only in violation by showing the pre-release version to the intern but not to a relative such as his brother.

D)   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.

The correct answer was B)    

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.

18、Which of the following statements concerning Standard II(A), Material Nonpublic Information, is TRUE? A member:

A)   cannot trade on material non-public information.

B)   can trade on material non-public information if the information was not obtained through a breach of duty.

C)   can trade on material non-public information if the information has not been misappropriated.

D)   can trade on material nonpublic information if the information is not related to a tender offer.

The correct answer was A)    

Members cannot trade on material nonpublic information until that same information is made public. It does not matter if the information was not misappropriated, not obtained through a breach of duty, or does not relate to a tender offer.

19、An analyst is allowed to trade on information that he has predicted, such as a corporate action or event, using perceptive assembly and analysis of material public information or nonmaterial, non-public information. This is called the:

A)   deduction theory.

B)   assessment theory.

C)   mosaic theory.

D)   creation theory.

The correct answer was C)    

This deductive reasoning is legal (does not constitute trading with inside information) and is called the mosaic theory.

20、Insider trading can be defined as information that is:

A)   nonmaterial and nonpublic.

B)   material and public.

C)   material and nonpublic.

D)   nonmaterial and public.

The correct answer was C)

Information is material if it would be important to the investor in their investment making decision. Information is nonpublic if it is not yet available to the public.