material nonpublic info

Greg Allen is a security analyst and visits David Dawson, the Chief Financial Officer of Edmonds Company. Dawson reveals a great deal of nonmaterial financial data to Allen, data that Dawson routinely reveals to all security analysts who visit him. From this data and other industry information, Allen conjectures that Edmonds is likely to make a tender offer for another company in the industry, a fact that if true would be considered material to the value of the company. Allen: A) must not disseminate the information or use it for trading purposes until the tender offer is announced. B) should send a copy of the report to Dawson for verification before disseminating the report to clients. C) can publish his conclusion in a research report.

is answer B? you do need to verify facts with information source

C. Definition of mosaic theory.


Definitely C

C is correct

So, the standard process is to do your due-diligence and you can publish information directly without sending the documents to verify for facts? What happens if you were to send the document to the company and company replies back saying that they are indeed having a tender offer, does that suddenly become a material non-public information?