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) B and C

Question

Quizplus · Accepted Answer

Expert networks consisting of managers or executives of a publicly traded company who are hired as consultants by a hedge fund to provide insight about the company are legitimate if the consultants divulge only information that is already public. However, they have raised concerns that the consultants provide inside information, which would be illegal under Regulation FD. Hence, both options B and C are correct.

Expert Networks Consisting of Managers or Executives of a Publicly