Anne, a private wealth manager, is conducting interviews for a newresearch analyst for his firm. Wicky, an analyst with a local investment bank,is one of the candidates.,. During the interview, Wicky mentions a currentmerger in which his firm is acting as the adviser when he is describing hisanalytical skills. Anne has heard rumors of a possible merger between the twocompanies although no releases have been made by the companies concerned. Whichof the following actions by Andrews is least likely a violation of the Code andStandards?
　　A.       Waiting until the next day before trading on the information to allowtime for it to become public.
　　B.       Notifying all investment managers in his firm of the new informationso none of their clients are disadvantaged.
　　C.       Placing the securities mentioned as part of the merger on the firm'srestricted trading list.
　　CorrectAnswer: C
　　The guidance to StandardII(A)—Material Nonpublic Information recommends adding securities to the firm'srestricted list when the firm has or may have material nonpublic information.By adding these securities to this list, Andrews would uphold this standard.Because waiting until the next day will not ensure that news of the merger ismade public, answer A is incorrect. Negotiations may take much longer betweenthe two companies, and the merger may never happen. Andrews must wait until theinformation is disseminated to the market before he trades on that information.Answer B is incorrect because Andrews should not disclose the information toother managers; no trading is allowed on material nonpublic information.