SIE practice questionmediumMaterial Non-Public Information
Which of the following would be considered material, non-public information (MNPI)?
- AAn analyst's published research report recommending a buy
- BA news article about a company's quarterly earnings already published in the Wall Street Journal
- CA CEO privately telling a friend that the company will announce a merger tomorrow✓ Correct answer
- DHistorical stock price data available on a financial website
Explanation
Why C — A CEO privately telling a friend that the company will announce a merger tomorrow
Material, non-public information (MNPI) is information that is both material (would affect a reasonable investor's decision) and non-public (not yet disseminated to the general public). A CEO privately sharing news of an upcoming merger announcement is a textbook example of MNPI. Published news articles (A), analyst reports (C), and historical data (D) are all public information. Trading on MNPI — or tipping others to do so — is illegal.
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