3 ethics questions

  1. if you overhear information at a cafe from a director of a oil company about new oil reserves being found that is soon to be public information, can you trade on this? Is this insider information? 2. If you produce a report recommending a stock based on work done by your colleague, do you need to reference him/her? 3. you are about to issue a sell recommendation for biz corp when your company advises you that the note will make the company lose 5million in fees. What do you do?

1- i saw this on a 7city exam, they said yes you can trade, i say ‘no’ (it is material nonpublic) 2- no need to reference your coworker since you are all representing your firm 3- you stay objective and issue a sell recommendation

  1. cannot trade. insider information 2) no 3) continue with sell recommendation, put it on the restrictive list

When do you put things on the restrictive list?