- CFA Exams
- CFA Level I Exam
- Study Session 1. Ethical and Professional Standards
- Reading 3. Guidance for Standards I-VII
- Subject 5. Standard II (A) Material Nonpublic Information
CFA Practice Question
Under which circumstances can you trade using non-public information?
A. The information has been provided by a credible source.
B. The information will become public within 24 hours.
C. The information would not significantly impact security prices if disclosed.
User Contributed Comments 7
| User | Comment |
|---|---|
| danlan | Does the answer mean "non material"? |
| myanmar | yes this means "non material" |
| Goran80 | Can use non-public info when it would not impact significantly on the price |
| volkovv | the only non-public information that is allowed for use is non-material; that leaves material non-public as prohibited |
| bvides | How do you know the impact, shouldnt it be all nonpublic info prohibited? |
| gill15 | If it doesnt affect prices it is no longer material - only material affects prices....but even this doesnt make too much sense... they make a huge note about how if non public you must publicly disseminate it....once disseminated then trade....I guess they meant Material Non public has to be disseminated but with non public non material you can do whatever you want |
| davideme20 | I guess this refers to Mosaic Theory. |