CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

A CFA Institute member trades securities in a foreign securities market where no applicable local laws or stock exchange rules regulate the use of material nonpublic information. Like his colleagues and competitors, he takes investment actions based on material nonpublic information. What he does is ______.
A. legal and ethical
B. illegal and unethical
C. legal but unethical
Explanation: Insider trading is unethical. Investment professionals should make ethical choices in the absence of clear laws and rules.

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