- CFA Exams
- CFA Level I Exam
- Topic 10. Ethical and Professional Standards
- Learning Module 45. Application of the Code and Standards: Level II
- Subject 5. Magadi asset management
CFA Practice Question
Which of the following is incorrect?
B. Watch list help reduce insider trading.
C. Fire walls help reduce insider trading.
A. Dividend increase, decrease or omission cannot be considered material information, so trading based on it would not violate the prohibition on material non-public information.
B. Watch list help reduce insider trading.
C. Fire walls help reduce insider trading.
Correct Answer: A
It is material.
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