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)Barb knows that Sue, an accounting clerk, is planning on resigning on Friday.
B)Linda knows a new receptionist has just been hired.
C)Wendy knows that her firm's net income is continuing to increase at a steady rate.
D)Tracey knows her employer just received patent approval on a key new product.
E)Maria is the chief financial officer and knows the firm intends to maintain its current dividend policy.

Question

Quizplus · Accepted Answer

The approval of the patent on a key new product is likely to have a significant impact on the company's financial results and hence would be considered material non-public information. Information that is likely to have a significant impact on the company's financial results is generally considered material non-public information, and disclosure of such information is highly regulated to prevent insider trading.

Which One of the Following Items Is Most Apt to Be