In the example 9 and 10 CFA Vol. 1 (page 44). Talking about “material of nonpublic Info.” Its about a well known analyst for the auto industry. under the “mosaic theory” he arrives to the conclusion that a certain Co is an underweigth instead of an Overw. In the example it says that because of the mosaic theory he has not violated the standard II (A) by writting his report. In the example 10 it says that minutes before making public, in the TV, his research and conclusion, while reviwing the info, with the journalist Mary Zito, she goes and sells all the stocks she had. She violates the Standard because she did sell on material nonpublic info and she is not client of the analyst. Ok with that. BUT, the Q is: Is the analyst able (without violating the standard) to distribute the report to his clients before making public the info? In example 9 it does not specify if he distributes or just holds the info before talking in the TV. Anybody knows how it goes with this? Help will be appreciated!
Mosaic, non material non public information. No violation. TV Show, material, it is likey the price will fluctuate quickly after the announcment, hence, this is a violation. I would imagine clients would be unaffected by this. After all, remember priority of transactions.