CFA Practice Question

There are 361 practice questions for this study session.

CFA Practice Question

During an onsite company visit, Aidan Goodfellow, CFA, accidentally overheard the CEO of Skogland, Inc. discussing the company's tender offer to purchase Ames Enterprises, a retailer of Skogland products. According to the CFA Institute Standards of Professional Conduct, Goodfellow most likely can not use the information, because ______.
A. It relates to a tender offer.
B. He does not have a reasonable and adequate basis for taking investment action.
C. It was overheard and might be considered unreliable.
Explanation: Trading on the information is restricted. Since it relates to a tender offer, it is clearly material non-public information.

User Contributed Comments 2

User Comment
hibaeldeek what is a tender offer?
hon132 public bid to buy a firm, usually the other firm did not solicit for it and has yet to respond
You need to log in first to add your comment.