- 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
"Material," in the phrase "material non-public information," refers to information that ______.
A. is arrived at through discussions with a special friend that works at the company
B. is arrived at through discussions with the senior management of a company
C. a normal investor would consider important in making an investment decision
Explanation: Information is material if its disclosure would be likely to have an impact on the price of the security OR if a reasonable investor would want to know the information prior to making an investment decision.
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