Material Nonpublic Information (MNPI)

What this video covers

• The two-part test that defines MNPI, and why both conditions (material AND nonpublic) must be met simultaneously to trigger insider trading liability
• What "material" actually means: whether a reasonable investor would consider the information important in making an investment decision, and whether it would likely affect the security's price
• What "nonpublic" actually means: information that has not been widely disseminated to the general investing public through recognized channels such as press releases, SEC filings, or major news outlets
• The market absorption rule, and why publication alone does not make information public if the market has not had adequate time to digest and react
• How to evaluate half-truth exam traps, such as information that is nonpublic but not material (the CEO's lunch plans) or material but already public (published earnings reports)
• What "widely disseminated" requires for information to cross from nonpublic to public status