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← Series 79: Section 4
Series 79 practice questionmediumMNPI and Insider Trading

Under Regulation FD, when must a public company disclose material nonpublic information that was inadvertently disclosed to a select group of analysts?

  1. APromptly, typically within 24 hours, via a broadly disseminated method such as a press release or SEC filing✓ Correct answer
  2. BOnly at the next quarterly earnings call
  3. COnly if the analysts trade on the information
  4. DNo disclosure is required if the information is not used in trading
Explanation

Why A — Promptly, typically within 24 hours, via a broadly disseminated method such as a press release or SEC filing

Reg FD requires prompt public disclosure of any inadvertent selective disclosure of MNPI, usually within 24 hours. Waiting for a scheduled call or only acting if trading occurs does not satisfy the requirement and could expose the company to sanctions.

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