Series 79 practice questioneasyMNPI and Insider Trading
Which of the following is an example of material nonpublic information (MNPI)?
- AKnowledge of a pending, unannounced acquisition✓ Correct answer
- BCompany’s last year’s published annual report
- CCEO’s compensation as disclosed in SEC filings
- DInformation in widely circulated press releases
Explanation
Why A — Knowledge of a pending, unannounced acquisition
Unannounced M&A activity is classic MNPI. The trap is confusing public information or outdated data with MNPI, which must be both material and nonpublic.
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