In order to trigger liability under 10b-5 for insider trading, the investor must have possessed nonpublic information that was __________ and was significant to the decision of the investor.

Question

Quizplus · Accepted Answer

Material information is the correct term used in the context of securities law to describe information that would influence an investor's decision to buy or sell securities. Information must be material and nonpublic to trigger liability under Rule 10b-5 for insider trading.

In Order to Trigger Liability Under 10b-5 for Insider Trading