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
Which pages in this excerpt contain the exam content requested on Standard II — Integrity of Capital Markets?
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Answer
None; pages 1–10 only preview Chapter 4.
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Question
In a material nonpublic information scenario, what is the best immediate action under CFA ethics?
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Answer
Consult compliance and place the issuer on a restricted list.
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Question
In an exam scenario, why is an anonymous rumor usually not treated as material nonpublic information?
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Answer
It is ambiguous or unreliable, so generally not material.
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