Series 99: Exercise

Exercise

Answer the following questions.

1. 1. Which of the following statements best describes an aspect of information barriers?
2. A. Information barriers must be established and reviewed on a semiannual basis.
3. B. Information barriers are a mechanism to prevent insider trading.
4. C. Information barriers permit sharing of information between the investment banking and trading departments of a firm.
5. D. Information barriers facilitate sharing of information between the investment banking department and portfolio managers of a firm.
6. 2. Many companies have policies in place that help prevent insider information from being available to other departments. This is an example of:
7. A. Isolation policy
8. B. A Chinese Wall
9. C. Segregation processes
10. D. A castle barrier
11. 3. When an investment banking department needs information from the research department on a watch list security, what should they do according to FINRA’s “Chinese Wall” policy and procedure?
12. A. Nothing. An investment banker should never bring a research employee “over the wall.”
13. B. The investment banker could bring the employee “over the wall.”
14. C. The investment banker could go “over the wall.”
15. D. Information on watch list securities is generally not information that is kept “behind the wall.”

Answers

1. 1. B. Information barriers are procedures within an organization that segr