Question

An agent attends a conference where officers of publicly held companies give talks about their companies to increase investor awareness and to put a "positive face" on the company for the investing public. While taking a break from the lectures, the agent overhears an officer of a company, who is next up to give a speech, talking on his cell phone in the hotel lobby, where he says: "You are telling me that we have just received a Wells notice from the SEC!" The agent knows that this is new information that is not public. The agent would be permitted to:

Answer 1

Answer:

• Talking about the conversation with a compliance officer of his firm  

• Accept unsolicited trades from costumers in the company's stock

Explanation:

The agent listened to another company's employee talking on the phone about confidential information, that is, private information that the agent should not be listening to, but he has heard and can use it to his company's advantage. Since no one knows that the agent has this information, he can talk about the conversation he has heard with a compliance officer at his company, and he can accept unsolicited dealings from customers on the company's stock.