Question

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

Answer 1

The correct answer is both a and b. As long as the information that is conveyed is public knowledge than it does not violate fair disclosure which states that publicly traded companies must disseminate material information to investors at the same time.