Which one of the following items is most apt to be considered material non-public information? Assume that none of this information is known publicly
A) Peter knows that Paul, a factory worker, is planning on resigning tomorrow.
B) Susie knows that her employer is planning on firing a receptionist on Friday.
C) Katie knows that her firm's sales are continuing their pattern of increasing by 5 percent annually.
D) Nick knows that his fellow engineers have developed an efficient, inexpensive, alternative fuel.
E) As the CFO, Ian knows that his firm will be able to continue the past growth rate in their dividend.

Question

Quizplus · Accepted Answer

The development of a new, efficient and inexpensive alternative fuel by engineers is likely to have a significant impact on the company's future financial performance, making it material non-public information that should not be shared until it is disclosed publicly. Other choices, such as a factory worker resigning, firing a receptionist or a firm's consistent sales growth rate, may not have the same level of impact on the company's financial performance, making them less likely to be considered material non-public information. As for the CFO's knowledge of the firm's future growth rate in dividends, it could be considered material information, but it may not be non-public if the company has disclosed its dividend policy previously.

Which One of the Following Items Is Most Apt to Be