Expert networks consisting of managers or executives of a publicly traded company who are hired as consultants ("experts")by a hedge fund to provide insight about the company
A)are illegal under Regulation FD.
B)are legitimate if the consultants divulge only information that is already public.
C)have raised concerns that the consultants provide inside information.
D)are legitimate if the consultants divulge only information that is already public AND have raised concerns that the consultants provide inside information.

Question

Quizplus · Accepted Answer

Expert networks are legitimate if the consultants only share information that is already public, but there are concerns that these consultants might provide inside information, which could lead to unfair trading advantages. This dual aspect makes option D correct, as it acknowledges the legality under specific conditions and the ethical concerns involved.

Expert Networks Consisting of Managers or Executives of a Publicly