Investors who lack inside information and have sold their stock during the relevant time period may recover damages from insiders who have made use of the undisclosed information.

Question

Quizplus · Accepted Answer

This statement is true, as insiders who use undisclosed information to buy or sell stock are engaging in insider trading, which is illegal and can lead to civil damages for investors who sold during that time period. These damages can be recovered through class action lawsuits or other legal actions.

Investors Who Lack Inside Information and Have Sold Their Stock