Series 79 practice questionmediumChinese Walls / Information Barriers
A firm’s watch list is primarily used for which purpose?
- ATo identify deals closed this quarter
- BTo monitor trading in securities of issuers where the firm might have MNPI✓ Correct answer
- CTo list all upcoming IPOs
- DTo keep a record of terminated employees
Explanation
Why B — To monitor trading in securities of issuers where the firm might have MNPI
The watch list is used to monitor trading in securities where the firm may have MNPI. The trap is confusing the watch list with other lists (like restricted or IPO lists).
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