Q18.A stockbroker who is a member of CFA Institute has a part-time housekeeper who also works for the CEO of Festival, Inc. One day the housekeeper mentions to the broker that she saw the CEO of Festival having a conversation at his home with John Tater, who is a nationally known corporate lawyer and consultant. The stockbroker is restricted from trading on this information:

A)   for both of the reasons listed here.

B)   only if the broker knows that the meeting is non-public information.

C)   if the housekeeper says the meeting concerned a tender offer and the broker knows that it is non-public information.

Q19. 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.

Q20.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)   not trade on the information unless it was arrived at through the "mosaic theory."

B)   not trade on the information.

C)   make reasonable efforts to insure the information's accuracy before recommending that others trade on the information.

Q21.According to CFA Institute Standards of Professional Conduct, which of the following statements about material nonpublic information is FALSE? Information is:

A)   material if reasonable investors would want to know the information before making an investment decision.

B)   nonpublic until it has been disseminated to a select group of investors.

C)   nonpublic until it has been disseminated to the marketplace in general.

答案和详解如下：

Q18.A stockbroker who is a member of CFA Institute has a part-time housekeeper who also works for the CEO of Festival, Inc. One day the housekeeper mentions to the broker that she saw the CEO of Festival having a conversation at his home with John Tater, who is a nationally known corporate lawyer and consultant. The stockbroker is restricted from trading on this information:

A)   for both of the reasons listed here.

B)   only if the broker knows that the meeting is non-public information.

C)   if the housekeeper says the meeting concerned a tender offer and the broker knows that it is non-public information.

Correct answer is C)

Standard II(A), Material Nonpublic Information, states “a member cannot trade or cause others to trade in a security while the member possesses material nonpublic information” A tender offer would certainly be material nonpublic information. Knowing that the meeting took place, and nothing else, does not restrict the broker. A reasonable investor would need to know more to determine if the information was m

Q19. 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.

Correct answer is 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. Divesting a department is not a suitable method for addressing this potential problem.

Q20.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)   not trade on the information unless it was arrived at through the "mosaic theory."

B)   not trade on the information.

C)   make reasonable efforts to insure the information's accuracy before recommending that others trade on the information.

Correct answer is C)

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.

Q21.According to CFA Institute Standards of Professional Conduct, which of the following statements about material nonpublic information is FALSE? Information is:

A)   material if reasonable investors would want to know the information before making an investment decision.

B)   nonpublic until it has been disseminated to a select group of investors.

C)   nonpublic until it has been disseminated to the marketplace in general.

Correct answer is B)

Standard II(A), Material Nonpublic Information, states that information is “nonpublic” until it has been disseminated to the marketplace in general as opposed to a select group of investors.

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