Material nonpublic information is defined as any information that could reasonably be expected to do which one of the following?
A)affect the price of the firm's securities
B)cause great embarrassment to the firm
C)cause one or more of the senior executives of the firm to resign
D)cause the SEC to halt the trading of the firm's securities should that information become public
E)affect the manner in which the firm presents its financial information

Question

Quizplus · Accepted Answer

Material nonpublic information refers to information that could affect the price of the firm's securities if it were to become publicly known. This includes information about a company's financial performance, merger and acquisition activity, changes in senior management, and other significant events that could impact the company's future prospects. Choosing B, C, D, or E is incorrect as they do not universally apply to all material nonpublic information.

Material Nonpublic Information Is Defined as Any Information That Could