Which of the following would be considered material information?
The CFO of a competitor discussing a potential bankruptcy at Beech Inc. |
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The retired CEO of Beech Inc. discussing an expected increase in Beech Inc.'s dividends next quarter. |
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A change in auditor notification at Beech, Inc. |
The CFO of a competitor discussing a potential bankruptcy at Beech Inc. is considered material information.
Reasons:
1. The source of information is reliable: CFO of a company.
2. The stock price can change significantly if the information is made public.
The other two answer options are incorrect because either the source is unreliable or the information may not cause the stock price to change significantly.
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Which of the following would be considered material information? The CFO of a competitor discussing a...
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