During an on-site company visit, Marsha Ward, CFA, accidentally overheard the Chief Executive Officer (CEO) of Stargazer, Inc., discussing the company’s tender offer to purchase Dynamica Enterprises, a retailer of Stargazer products. According to the CFA Institute Standards of Professional Conduct, Ward most likely cannot use the information because:
- it relates to a tender offer.
- it was overheard and might be considered unreliable.
- she does not have a reasonable and adequate basis for taking investment action.
A is correct pls explain why option c is wrong???
The info is material non-public info , so can’t be used to make investment recommendation or taking any investment actions . Option C is wrong because it’s nothing stated in the ques about whether she have undertaken the research or not , nothing related to it is mentioned. So, we can’t decide upon it .
Option A sounds best in this case .