Under the ________ theory,a person who lacks a fiduciary duty to a company may nonetheless violate Rule 10b-5 by trading on nonpublic information in the company's stock.

Question

Quizplus · Accepted Answer

The theory described in this question is the misappropriation theory, which is a form of insider trading where a person who is not an insider but still owes a duty of trust or confidence to the source of the nonpublic information, such as a company's lawyer or accountant, may be liable for insider trading under Rule 10b-5. The other answer choices do not fully describe this theory.

Under the ________ Theory,a Person Who Lacks a Fiduciary Duty