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Answer: The disclosure of significant legal disputes during an internal management meeting.
### Explanation **Option A**: Incorrect. According to **Standard II(A) - Material Nonpublic Information**, details about large trades may be material before execution but not after execution, as the information becomes public post-execution. **Option B**: Correct. **Standard II(A)** specifies that material nonpublic information includes significant legal disputes, as such information is not yet widely disseminated and could impact investment decisions. **Option C**: Incorrect. Information discussed at an annual general meeting is considered public, as it is widely available to all market participants. **Standard II(A)** defines nonpublic information as that which has not been made available to the general marketplace. This question tests the candidate's understanding of **ethical and professional standards**, particularly the application of the **Code of Ethics and Standards of Professional Conduct** in scenarios involving professional integrity.
Author: LeetQuiz Editorial Team
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According to the CFA Institute Standards, which of the following scenarios is most likely to constitute material nonpublic information?
A
The execution of a substantial buy order by a hedge fund.
B
The disclosure of significant legal disputes during an internal management meeting.
C
Discussions about increased board compensation during the company's annual general meeting.
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