Show a deep grasp of CFA Institute's Code and Standards by using them to resolve particular cases

Two questions decide an inside-information case. 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? If both hold, the member must not trade or cause others to trade, whatever the source. The mosaic theory protects conclusions built from public information and nonmaterial nonpublic scraps, even when the conclusion would have been material had management stated it. Manipulation turns on intent: spreading false rumours to move a price, or trading to fake activity or push a closing price, breaches Standard II(B), while breaking a large order into pieces to limit market impact is a legitimate strategy.