CFA Practice Question

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CFA Practice Question

Trading on material nonpublic information is least likely to be prevented by establishing ______.
A. fire-walls
B. selective disclosure
C. watch lists
Explanation: Selective disclosure occurs when companies discriminate in making material nonpublic information public. Corporations that disclose information on a limited basis create the potential for insider-trading violations.

User Contributed Comments 1

User Comment
yanoshi How would a watch list prevent insider trading? I think they meant to say a restricted list
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