Show firm command of the Code and Standards by applying them to professional integrity cases under Standard II, Integrity of Capital Markets

For a portfolio manager, inside information often arrives through the job itself: a wall-crossing before a share placement, a seat on a creditors' committee, or a call with an industry expert. 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. The mosaic theory still protects a conclusion built from public data and nonmaterial scraps. Under II(B), buying thinly traded holdings just before a quarter-end valuation to lift reported performance is manipulation, as is talking up a position with misleading claims. Working a large order gradually to limit market impact, or trading on a genuine research view, is legitimate. Intent to mislead decides it.