Material nonpublic information
Information that would move a price and has not been released to the market generally. Telling a room of analysts is not releasing it.
Where you will meet it
Material nonpublic information appears in 2 learning outcomes on the CFA syllabus. A few of them:
- Put the Material Nonpublic Information standard, II(A), into practice
“Members who possess material nonpublic information that could affect the value of an investment must not act or cause others to act on it.”
- Propose practices and procedures that head off breaches of the Code and Standards under Standard II, Integrity of Capital Markets
“The core defence is an information barrier around anyone who may hold material nonpublic information: communication across it cleared by compliance, physical and systems separation, and documented enforcement.”
Practise it
Practise material nonpublic information until it is automatic: questions that explain every wrong option.
Take the free diagnostic →