Which of the following statements about material non-public information handling by a financial professional?

• A. It can be shared with colleagues to enhance market knowledge.
• B. It must be kept confidential and not used for personal gain or shared.
• C. It should be posted on internal forums for transparency.
• D. It should be sold to clients for advantage.

Answer: (B)

Handling material non-public information requires keeping it confidential and not using it for personal gain or sharing it. This type of information could influence a security’s price if it became public, so financial professionals must protect it and only share it when there is a legitimate, need-to-know reason and within approved channels. Sharing with colleagues to boost market knowledge risks leaks and violates duties of confidentiality and applicable laws against insider trading. Posting on internal forums can still expose MNPI to unauthorized eyes and undermine the integrity of markets unless it’s strictly controlled and properly cleared, which is rarely appropriate for such information. Selling MNPI to clients for advantage is a direct violation of ethical standards and legal requirements. Keeping MNPI confidential and using it only within proper, authorized boundaries best upholds professional conduct and market fairness.