Can someone please explain how/why trading or accepting orders AFTER market hours constituets acticing on material non-public information?
Referring to question #17 on CFAI Mock Exam - AM. Thx!
Hi there, I find it weird too that they were referring to MNI in that question!!! I’m glad I’m not alone on this
maybe something to do with giving that person more of an advantage to trade on newly released earnings over everyone else who might not be able to trade on this information due to their brokers not being avialable or something of that nature. I would assume this falls under transactual material non public since you gain some information and have the chance to trade on it before someone else gets a chance since markets are closed. Does the answer key provide an explanation?
it says that it’s illegal to trade after market close “in US”, and that broker had an asian client who was allowed to do so because of different time frame … we all agree there’s a violation in this case, but I don’t see it’s related to MNI !!! maybe Fair dealing or knowldege of the law.