Sportsman

? Firewalls – Prevention of Personnel Overlap - an analyst who follows a particular company may provide limited assistance to the investment bankers under carefully controlled circumstances when the firm’s investment banking department is involved in a deal with the company. That analyst must then be treated as though he or she were an investment banker; the analyst must remain on the investment banking side of the wall until any infor- mation he or she learns is publicly disclosed

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You cover REITs and overhear in the elevator, accidentally, the iBankers talking about a major deal going down for the X REIT.

You go back to your desk, and run your daily screen, like you always do. X REIT pops up as the best security on the list. You conduct thorough research and conclude it is a great stock. You recommend its addition to the portfolio. NOTE: even if you didn't hear about the deal, you would have still reached the same conclusion and recommendation.

Violation because once you are aware of any Ibanking deals - you must act as if you are an Ibanker for that deal until it closes. So you can't act on it whatsoever, right? That would be a violation of Material NonPublic information...



Edited 1 time(s). Last edit at Thursday, June 2, 2011 at 12:41PM by tiredofstudying.