Market Manipulation through Information Disclosure

Very Hard Cfa Institute Code And Standards Integrity - Market Manipulation

As a financial analyst, you receive material non-public information about a company that is not yet publicly available. In a conversation with a fellow analyst, you mention your belief that this company is about to report disappointing quarterly earnings, based on the information you received. Your fellow analyst indicates that they will sell their shares based on your insight.

Which of the following actions would be considered a violation of the CFA Institute Code of Ethics regarding market manipulation and integrity?

You refrain from trading the company's shares until the information is made public.

You disclose the information to your fellow analyst but advise them to verify it independently.

You share your analysis and sell your own shares based on the information you possess.

Hint

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