Insiders may refrain from trading on inside information rather than disclose it to avoid liability under Rule 10b-5.

Name: Insiders may refrain from trading on inside information rather than disclose it to avoid liability under Rule 10b-5.
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Rule 10b-5 prohibits insider trading, and insiders who trade on inside information can face legal liability. To avoid this liability, insiders may choose to refrain from trading on the information instead of disclosing it.

Insiders May Refrain from Trading on Inside Information Rather Than