Individuals who steal valuable nonpublic information in breach of a fiduciary duty to their employers and trade in securities on that information are guilty of insider trading as misappropriators.

Question

Quizplus · Accepted Answer

This statement is true. Insider trading can occur when individuals breach their fiduciary duty to their employers by stealing valuable nonpublic information and then trade securities based on that information. These individuals are known as "misappropriators" because they are using information that is not rightfully theirs.

Individuals Who Steal Valuable Nonpublic Information in Breach of a Fiduciary