In a meeting with a publicly listed tea company, Kandy Tea Estate Limited, information is revealed that neither Mathew nor Prem believe is in the public arena. The information relates to the restructuring of the factory layout to make the tea drying process marginally more efficient with a 1% reduced loss of tealeaf. The new layout does not require any additional machinery or personnel. Prem and Mathew see the increased efficiencies during their factory tour.
Is any further action most likely required of Prem and Mathew prior to publishing an investment report using the information received in their meeting with Kandy Tea Estate?
- Yes, independently verify the information provided by the company.
- Yes, convince the company to make a public disclosure.
- No.
answer with a reason why ?
NO ., bcuz they have already seen the efficiencies during their factory tour
the answer should be 2 because
they are using more efficient drying process which reduces losses by 1% which seems to be a material information for the investors.
they get know and verify this during the tour and are supposed to write a report on it
but this info is still non public so they should urge the company to make it public.
grey area my friend the answer is 3
grey area my friend the answer is 3
the answer should be 2 because
they are using more efficient drying process which reduces losses by 1% which seems to be a material information for the investors.
they get know and verify this during the tour and are supposed to write a report on it
but this info is still non public so they should urge the company to make it public.
answer should be option C because i think that 1% related to cost reduction for the company does not seems to a material information so there is no further action required .