May be after listening to two executives regarding proposed tender offer, She did not analyze both the companies and directly called senior analyst to increase position. That means the statement, ‘she followed both companies extensively’ does not means it Mosaic theory. Hence she violated the standard by using material non public information.
Michaelson’s recommendation regarding the purchase of Network is in violation of standard 2(a) material nonpublic information. Members who possess material non-public information are prohibited from trading or causing others to trade in based on that information since the information Michaelson received during her flight involved collectives proposed tender offer for the share of Network, she was in possession of material non-public information, and should not have recommended the purchase of network based on the information. Therefore, Michaelson’s action Violets standard 5(A) end, potentially federal securities laws, which would also cause a violation of standard 1(A) knowledge of the law.
Is the correct answer option C. Please share the answer.
I did the same but the answer is (A)
Please share the answer in detail.
May be after listening to two executives regarding proposed tender offer, She did not analyze both the companies and directly called senior analyst to increase position. That means the statement, ‘she followed both companies extensively’ does not means it Mosaic theory. Hence she violated the standard by using material non public information.
The question was indeed difficult.
Michaelson’s recommendation regarding the purchase of Network is in violation of standard 2(a) material nonpublic information. Members who possess material non-public information are prohibited from trading or causing others to trade in based on that information since the information Michaelson received during her flight involved collectives proposed tender offer for the share of Network, she was in possession of material non-public information, and should not have recommended the purchase of network based on the information. Therefore, Michaelson’s action Violets standard 5(A) end, potentially federal securities laws, which would also cause a violation of standard 1(A) knowledge of the law.
“Which will be announced”
I think this is the focus area that it was anyway going to get announced but she used it prior.