Question
If an analyst learns a drug trial failed before the news is public, why must she avoid trading or recommending trades?
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Answer
Because it is material nonpublic information.
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Question
What is 'painting the tape' in market manipulation?
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Answer
Executing trades to make a security appear more active.
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Question
How can information qualify as material even if its price impact is uncertain?
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Answer
A reasonable investor would want it before investing.
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Question
Why is trading on a mosaic conclusion not a violation even if the conclusion is material?
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Answer
Because no single input was both material and nonpublic.
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