FINRA Practice Exam 2025 – Complete Prep Guide

The declared stock dividend is not considered inside information when shared with a registered representative. Inside information typically refers to material information that has not been made public and could influence an investor’s decision or affect the stock price.

A declared stock dividend is information that a company's board has formally announced and made public. Once declared, this information is accessible to all shareholders and potential investors, who can use it in their decision-making process.

On the other hand, pending transactions, top management changes, and imminent financial liquidity problems are all examples of non-public, material information. This type of information could significantly impact the financial standing or stock performance of a company if disclosed, and therefore would generally be classified as inside information. Sharing such details with anyone who does not have a duty to maintain confidentiality, including a registered representative, could lead to regulatory violations and implications for insider trading.