Expert Networks Consisting of Managers or Executives of a Publicly

question 25

Multiple Choice

Expert networks consisting of managers or executives of a publicly traded company who are hired as consultants ("experts") by a hedge fund to provide insight about the company:

• A) are illegal under Regulation FD.
• B) are legitimate if the consultants divulge only information that is already public.
• C) have raised concerns that the consultants provide inside information
• D) B and C

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Definitions:

Manage Exchange Rate

Strategies or practices employed by individuals, businesses, or countries to mitigate or take advantage of fluctuations in exchange rates.

London Interbank Offer Rate (LIBOR)

The rate most international banks charge one another for overnight Eurodollar loans.

Note Issuance Facility (NIF)

Large borrowers issue notes up to one year in maturity in the Euromarket. Banks underwrite or sell notes.

Forward Exchange Rate

An agreed-upon exchange rate for currencies to be exchanged on a predetermined future date, used to hedge against currency market fluctuations.