What would be recommednded action for a firm that has disclosed material non-public in analyst meeting? a)The frirm should promptly issue a press release b)The frim should not act on the information for atleast five working days c)The frim should promptly issue a notificatin to the analyst for not taking any action until the information is disseminated According to the authors the answer is A but can someone explain to me why option c is wrong
Perhaps because A guarantees that the once the information is made public, the risk of trading on material non-public informational has been negated, whereas only notifying someone not to act on that information still holds risk.
Also there could have been a large number of analysts present at the meeting which would increase the risk further,
so in my opinion, the answer is A as it errs on the side of caution.