Category: Material Nonpublic Information
Material Nonpublic Information (MNPI) refers to any information about a company that has not been disclosed to the public and could significantly influence an investor’s decision to buy or sell the company’s securities. This type of information is considered “material” if its release could affect the market value of the company’s stock or other securities. Examples of MNPI include earnings reports before they are announced, news of a pending merger or acquisition, or any significant operational changes. Trading on MNPI is illegal and can lead to severe penalties, as it undermines the fairness and integrity of the financial markets.