Concept: Mosaic Theory

CFA Level I Glossary

Mosaic theory says an analyst may reach and trade on a conclusion formed by combining public information with nonmaterial nonpublic information. The pieces alone need not be material, but together they form a justified investment view. Material nonpublic information remains off limits. The trap is treating any private scrap of information as automatically material, or assuming mosaic theory excuses trading on true MNPI.

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