Series 79 practice questionmediumMNPI and Insider Trading
A public company executive unintentionally discloses material nonpublic information during a private call with several analysts. According to Regulation FD, what must the company do?
- AIssue a press release only after the information is published by the media
- BNotify the SEC about the disclosure within 10 days
- CWait until the next quarterly filing to disclose the information
- DPromptly make public disclosure of the information✓ Correct answer
Explanation
Why D — Promptly make public disclosure of the information
Reg FD requires prompt public disclosure of MNPI unintentionally shared with analysts. Waiting or relying on media coverage fails to satisfy the immediate disclosure requirement.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Section 4 questions
- Under FINRA rules, which of the following must be disclosed as underwriting compensation in a public offering?
- Which of the following must be observed by a research analyst during the quiet period following a public offering?
- A director of a public company routinely shares confidential earnings information with his spouse, who never trades,…
- Under SEC Rule 17a-4, how long must a broker-dealer retain records relating to communications with customers, such as…