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Insider trading and mosaic theory

Let’s say you doing research into a company (combination of interviews with employees and research from public info). The interviews have generated non-material, non-public info, and your cumulative research points to a strong buy. 

Nothing wrong here, but let’s say as you walk out, the CEO gives you a piece of material non-public info…

Can you still buy their stock?

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Of course you can.

And you’ll violate the Standards if you do.

CEOs are handing out material nonpublic information to analysts all the time.  Especially in CFA Institute’s vignettes.  Almost gleefully.  I don’t understand their motivation.

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

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Thanks, and what if you’re a research analyst issuing a report. Would you simply not include the new information in the report, and issue it to your clients just as before? 

I’m glad to see people considering ethics on this Good Friday!!! yes

“Mmmmmm, something…” - H. Simpson

iceshift wrote:

Thanks, and what if you’re a research analyst issuing a report. Would you simply not include the new information in the report, and issue it to your clients just as before? 

Do the Standards recommend doing something BEFORE issuing your report????????  enlightened

“Mmmmmm, something…” - H. Simpson

breadmaker wrote:
iceshift wrote:
Thanks, and what if you’re a research analyst issuing a report. Would you simply not include the new information in the report, and issue it to your clients just as before?

Do the Standards recommend doing something BEFORE issuing your report????????  enlightened

You mean like planning your escape?

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/

Those darned, pesky extradition treaties make planning difficult, don’t they???? cheeky

“Mmmmmm, something…” - H. Simpson