So I am reviewing Standard II A Material nonpublic info…maybe a rhetorical question but: if the mosaic theory (in lehman’s terms) states that analysts are free to act on the collection of info without risking violation of the standard- then why is the act itself, then a violation? Maybe, it’s a circle I can’t seem to get myself out of… Please advise…
Mosaic Theory applies specifically to “material public information” and “non-material non-public information,” as opposed to “material non-public” which creates the violation.
Thanks for responding- very concise, well-put. Fully understood.=)
the basic rule i follow to attempt such a question is - 1. Find what is ‘information’ in question? 2. Just figure out if that info is material non-public - if not, then it can be used…