Q19. According to CFA Institute Standards of Professional Conduct, which of the following statements about material nonpublic information is FALSE? Information is:

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

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

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

Q20. 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)   should restrict employee trading in securities for which the firm is in possession of material non-public information.

C)   must divest one of the departments.

Q21. Andrea Waters is an investment analyst who has accumulated and analyzed several pieces of nonpublic information through her contacts with drug firms. Although no one piece of the information she collected is "material," Waters correctly concluded that the earnings of one of the drug companies would be unexpectedly high in the coming year. According to CFA Institute Standards of Professional Conduct, Waters:

A)   cannot legally invest or make recommendations based on this information.

B)   may use the information, but only after approval from a compliance officer or supervisor.

C)   can use the information to make investment recommendations and decisions.

答案和详解如下：

Q19. According to CFA Institute Standards of Professional Conduct, which of the following statements about material nonpublic information is FALSE? Information is:

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

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

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

Correct answer is A)

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.

Q20. 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)   should restrict employee trading in securities for which the firm is in possession of material non-public information.

C)   must divest one of the departments.

Correct answer is B)         

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.

Q21. Andrea Waters is an investment analyst who has accumulated and analyzed several pieces of nonpublic information through her contacts with drug firms. Although no one piece of the information she collected is "material," Waters correctly concluded that the earnings of one of the drug companies would be unexpectedly high in the coming year. According to CFA Institute Standards of Professional Conduct, Waters:

A)   cannot legally invest or make recommendations based on this information.

B)   may use the information, but only after approval from a compliance officer or supervisor.

C)   can use the information to make investment recommendations and decisions.

Correct answer is C)         

Members who can piece together items of nonmaterial nonpublic information with public information can, based upon the mosaic theory, use such information for trading purposes.

THX