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Mosaic Theory/Material Non Public Info

Confused about Mosaic Theory - does this basically mean that the analyst CAN use material non-public info as long as it’s COMBINED with some public info? Or some nonmaterial public/non-public info? 

Or, under NO circumstances, can you trade on material non public info, EVER? Even under the Mosaic Theory?

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It just means that if an analyst combines non-material nonpublic info and material public info, you can end up with information that would be considered material non-public. Think of it like if you do a ton of detective work, you can figure out a lot of things about a company that the public doesn’t know, and if the public knew it would impact the stock price. But this doesn’t mean anyone told you it, you are just a good research analyst and used bits and pieces of information to figure it out.

You can never use material non-public information you are told from a company insider under any circumstances.

Mosaic theory says that it’s OK to combine non-material, nonpublic information with public information.

Under no circumstances are you allowed to use material, nonpublic information.  Period.

Simplify the complicated side; don't complify the simplicated side.

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Got it…thanks guys!

My pleasure.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/