CFA Standard II

CFA Standard II

Integrity of Capital Markets

Integrity of Capital Markets

Members and Candidates who posses material nonpublic information that could affect the value of an investment must not act or cause others to act on the information

Multiple Choice

When information is not „material”?

• if its disclosure wouldn't have any impact on the security

• if it is important for making an investment decisions by investors

• if it comes from a reliable source

• if its disclosure would have an impact on the price

Multiple Choice

Information is "nonpublic" untlil

• it has been disseminated to investors in general

• it has been disseminated to analysts, selected group of investors

• it has been available to the marketplace in general

Market Manipulation

Members and Candidates must not engage in practices that distort prices or artificially inflate trading volume with the intent to mislead market participants

Multiple Choice

Market manipulation can consist

• transactions that deceive or would be likely to mislead market participants

• spreading false rumors to induce trading by others

• the dissemination important public information

• instances where a member and candidate knew or should have known that his or her actions could affect the pricing of a security