Laws & Regulations第 91 / 110 题

Which activity constitutes a prohibited misuse of material nonpublic information?

a.Recommending a stock based on published research reports
b.Reviewing a company's public annual report
c.Trading on confidential inside information before it is released to the public
d.Discussing widely reported market news with a client

解析

Trading on material nonpublic (inside) information, or tipping others to do so, is insider trading and is strictly prohibited under federal securities law. Advisers must maintain policies to prevent the misuse of such information. Using publicly available research and news, by contrast, is entirely permissible.

法律依据: Investment Advisers Act of 1940

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