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
- BTrading the security for proprietary or client accounts✓ Correct answer
- CEngaging in due diligence on the company
- DAttending industry conferences about the sector
Explanation
Why B — Trading the security for proprietary or client accounts
Restricted list status prohibits trading in the security to prevent misuse of MNPI. The trap is thinking only public discussions or client trades are affected.
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