The illegal business practice where market participants base decisions on confidential information not known generally to the market is known as ____ .

Question

Quizplus · Accepted Answer

Insider trading is the illegal practice of using confidential information known only to a select few to make investment decisions. Misrepresentation and fraud in the inducement involve making false statements to deceive someone into entering a contract. Promissory estoppel involves a promise made by one party that another party relies on to their detriment. None of these practices specifically involve the use of confidential information for investment decisions.

The Illegal Business Practice Where Market Participants Base Decisions on Confidential