Series 79 practice questionmediumChinese Walls / Information Barriers
When an investment bank places a security on its restricted list, what are its employees generally prohibited from doing?
- ADiscussing the company in public forums only
- BRestricted personal and proprietary trading✓ Correct answer
- CEngaging in due diligence on the company
- DAttending industry conferences about the sector
Explanation
Why B — Restricted personal and proprietary trading
Restricted lists commonly stop employee and proprietary trading and research publication. Treatment of unsolicited client agency orders varies under the firm's controls; a restricted list does not universally prohibit every client-account transaction.
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