Trading based on informational asymmetries is always illegal.

Question

Quizplus · Accepted Answer

Trading based on informational asymmetries is not always illegal. Insider trading, where one trades stocks or other securities based on material, non-public information, is illegal. However, trading based on expertise, analysis, or publicly available information that may not be equally distributed among all market participants is legal and a common practice in financial markets.

Trading Based on Informational Asymmetries Is Always Illegal