Hwang is the founder and lead portfolio manager of Tiger Asia Partners (TAP) and Park is a trader for
the firm. TAP is participating in private placements for both Bank of China and China Construction Bank
stock, and the placement agents shared confidential information with Hwang and Park about both
companies. In the days prior to the private placement, Hwang directed Park to make short sales in each
stock. TAP earned $16.2 million by using the discounted private placement shares they received to cover
the short sales. Park’s actions were

Question

Accepted Answer

unacceptable because the trade was based on material nonpublic information.

Answer

acceptable because he was following the orders of his superior.

Answer

acceptable because he used a short position rather than trading in the bank stock itself.

Answer

acceptable if the placement agents did not require a confidentiality agreement covering
information about the private placements.

Crowdly

Hwang is the founder and lead portfolio manager of Tiger Asia Partners (TAP) and...

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