Dee,an accountant,does not work for Emergent Company,but wrong-fully obtains inside information concerning Emergent.Based on the in-forma-tion,Dee buys and sells Emergent stock for personal gain.The Securities and Exchange Commission prose-cutes Dee,arguing that she is liable because she stole in-formation right-fully belonging to another.This argument is

Question

Quizplus · Accepted Answer

The argument made by the Securities and Exchange Commission in this case is based on the misappropriation theory, which holds that a person can be held liable for insider trading if they wrongfully obtain confidential information belonging to another party and use it for personal gain.  This theory is based on the idea that the information itself is a form of property, and that stealing it is tantamount to theft of tangible assets.

Dee,an Accountant,does Not Work for Emergent Company,but Wrong-Fully Obtains Inside