Nonpublic
Not yet disseminated to the market. Information stays so until investors generally have had the chance to act on it, not merely once one outlet has reported it.
Where you will meet it
Nonpublic appears in 5 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.”
- Show a deep grasp of CFA Institute's Code and Standards by using them to resolve particular cases
“Is the fact material, meaning likely to move the price or to matter to a reasonable investor, and is it nonpublic, meaning not yet disseminated to the market?”
- Show firm command of the Code and Standards by applying them to professional integrity cases under Standard II, Integrity of Capital Markets
“If the fact is material and nonpublic, the manager may not trade on it or cause others to trade on it, and waits until it is disclosed.”
- Explain whether, and why, given practices, policies, and conduct breach CFA Institute's Code of Ethics and its Standards of Professional Conduct
“Anchor the explanation in the element that is or is not met: was the information both material and nonpublic; was the disclosure made before the agreement and in plain language; was the consent written; did the supervisor restrict the employee rather than just warn them.”
Practise it
Practise nonpublic until it is automatic: questions that explain every wrong option.
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