Confused about Mosaic Theory - does this basically mean that the analyst CAN use material non-public info as long as it’s COMBINED with some public info? Or some nonmaterial public/non-public info?
Or, under NO circumstances, can you trade on material non public info, EVER? Even under the Mosaic Theory?
It just means that if an analyst combines non-material nonpublic info and material public info, you can end up with information that would be considered material non-public. Think of it like if you do a ton of detective work, you can figure out a lot of things about a company that the public doesn’t know, and if the public knew it would impact the stock price. But this doesn’t mean anyone told you it, you are just a good research analyst and used bits and pieces of information to figure it out.
You can never use material non-public information you are told from a company insider under any circumstances.
Mosaic theory says that it’s OK to combine _ non-material , nonpublic information_ with public information.
Under no circumstances are you allowed to use _ material , nonpublic information_. Period.
Got it…thanks guys!
My pleasure.