What is the general reason for restrictions against insider trading under the Securities Exchange Act of 1934?
A) Corporate insiders should not own stock in the corporation because it is a conflict of interest.
B) Use of inside information is unfair to the other party to the transaction and goes against the philosophy of allowing all participants in the market having the same information.
C) Insider trading generally leads to lower stock prices.
D) Insider trading results in an imbalance of buyers and sellers in the market.
E) The value of a prospectus is compromised when insider trading is conducted.
Correct Answer:
Verified
Q49: Is there a private right of action
Q50: Which of the following is not an
Q51: Under Rule 10b-5,which is true about insiders?
A)
Q52: Which of the following is not correct
Q53: When selling securities under Regulation A,which of
Q55: When an insider discloses material insider information
Q56: Under the 1933 Securities Act,a person responsible
Q57: What actions can the SEC take against
Q58: Section 11 of the Securities Act of
Q59: The Securities Exchange Act of 1934 covers
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents