Explain the difference between when using material non-public information combined with public is accepted by the standard. 90sec
It’s never acceptable to use material non-public information. Either that, or I didn’t understand the question :-f
supersharpshooter Wrote: ------------------------------------------------------- > It’s never acceptable to use material non-public > information. > > Either that, or I didn’t understand the question > :-f its about mosaic theory. Can you do an example of it?
material public + non-material non-public = Ferrari’s and coke.
Example: Going to a shipyard and taking a look at a posted schedule - to see a relatively high number of oil tankers scheduled to come in from a certain speculative exploration company. Combined with recent buzz in the news about the company possibly tapping into a major offshore oil well. Would that qualify?
strangedays Wrote: ------------------------------------------------------- > supersharpshooter Wrote: > -------------------------------------------------- > ----- > > It’s never acceptable to use material > non-public > > information. > > > > Either that, or I didn’t understand the > question > > :-f > > > its about mosaic theory. Can you do an example of > it? mosaic is what the word means – analyst hodgepdges information that is public as he/she makes a recommendation.
I think it can be very tricky in the exam! however it is just my view
if material non public information is available to you, you should not use it by passing it on to others or act on it. however according to mosaic theory, an analyst needs to use tons of information from all over the place to make a recommendation. thus an analyst is free to use these information without having to worry about if they violated the standard or not, but as long as the information they used is public information, or non-material non-public. lets see. could this be an example…? an analyst can use: public information - annual report of a company non-material non-public information - the CEO of a company was not in the office to validate a report written by another analyst because he was getting a foot massage. This info is non-public, but it’s non-material.
JJane Wrote: ------------------------------------------------------- > if material non public information is available to > you, you should not use it by passing it on to > others or act on it. > > however according to mosaic theory, an analyst > needs to use tons of information from all over the > place to make a recommendation. thus an analyst is > free to use these information without having to > worry about if they violated the standard or not, > but as long as the information they used is public > information, or non-material non-public. > > lets see. could this be an example…? an analyst > can use: > public information - annual report of a company > non-material non-public information - the CEO of a > company was not in the office to validate a report > written by another analyst because he was getting > a foot massage. This info is non-public, but it’s > non-material. OK Thanks! Lucky the CEO! 
<> non material non public is ok? I agree – mosaic is tricky.