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 The trap is confusing public information or outdated data with MNPI, which must be both material and nonpublic.
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
- A branch manager fails to monitor an employee who repeatedly violates firm policy by executing unauthorized trades.…
- If a firm stores its books and records electronically, which of the following is a required condition under SEC Rule…
- Under FINRA Rule 4370, which of the following is a required element of a broker-dealer’s business continuity plan?
- Which of the following records must be preserved in an easily accessible place for the first two years under SEC rules?