Standard II(A): Material Nonpublic Information

Vocabulary review covering the key categories and determinants of materiality under Standard II(A): Material Nonpublic Information.

Standard II(A)

The ethical standard concerning Material Nonpublic Information.

Materiality Determinants

Substance and specificity, which determine whether information is considered material.

Corporate & Financial (Material Information)

A category of material information that includes earnings, changes in assets or asset quality, and bankruptcies.

Business Developments (Material Information)

A category of material information that includes mergers, acquisitions, tender offers, joint ventures, innovations products, processes, or discoveries, developments regarding customers or suppliers (e.g., loss of contract), and changes in management.

External & Regulatory (Material Information)

A category of material information that includes new licenses, patents, registered trademarks, or regulatory approvals/rejections, changes in auditor notification / qualified opinions, significant legal disputes, government reports of economic trends (employment, housing starts, currency), and orders for large trades before they are executed.