What to know
Identify the rule, formula, or decision criterion before reading the answer choices. CFA Level I distractors often use the right vocabulary with the wrong condition.
Ethical and Professional Standards
Standard II(A) Material Nonpublic Information practice questions
Standard II(A) Material Nonpublic Information is part of CFA Level I Ethical and Professional Standards. Ethics questions test judgment under the Code and Standards, especially duties to clients, employers, markets, and the CFA Program. Use this page to review the controlling ideas, then work through 4 questions with answer explanations and common traps.
Review the worked explanations before moving into adaptive practice. The app version can mix this topic with due reviews and weak related concepts.
Practice this topicHow to practice
Work each item under time pressure, then compare your reasoning with the step-by-step explanation and key takeaway.
Review signal
Missed questions should become scheduled reviews when the error comes from a concept gap, formula setup, or answer-choice trap.
Ethical and Professional Standards
Standard II(A) Material Nonpublic Information
Information is most likely material if it would:
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Standard II(A) Material Nonpublic Information
An analyst combines supplier interviews, satellite images, and public patent filings. No source gives earnings guidance, but she concludes an issuer will miss revenue estimates and lowers her recommendation. The conduct is most consistent with:
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Standard II(A) Material Nonpublic Information
An analyst combines public shipping data, supplier interviews, and a nonmaterial comment from a company salesperson to estimate quarterly revenue above consensus. One day later, the CFO privately tells the analyst that the board has approved an undisclosed merger that will materially increase the company's value. The analyst's most appropriate trading decision is to:
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Standard II(A) Material Nonpublic Information
Through an expert network, a consultant who recently left a medical device company provides exact current-quarter sales figures from an internal dashboard that has NOT been released. The figures would change the analyst's valuation materially. The analyst's most appropriate action is to:
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