Guidance for Standard II: Integrity of Capital Markets
Free CFA Level I lesson in Ethical and Professional Standards. 17 min read, ~2,613 words.
Standard II(A) prohibits acting or causing others to act on material nonpublic information (MNPI). Both prongs (material AND nonpublic) must be present. Mosaic theory permits combining public information with non-material nonpublic items to reach a material conclusion. The conclusion itself is the analyst's work product, not insider information. Standard II(B)...
Read the full lesson, free →
Worked examples, audio narration, and practice. No signup to read.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- ethics and trust
- code of ethics and standards
- standard I professionalism
- standard II integrity of capital markets
- standard III duties to clients
- standard IV duties to employers
- standard V investment analysis
- standard VI conflicts of interest
- standard VII responsibilities as member or candidate
- application of code and standards
Browse all free CFA Level I lessons or jump into free CFA Level I practice questions.