You are in possession of information that indicates a big merger between two corporations is about to occur, you might purchase shares of the corporation's stock so that when the merger is announced and the stock value increases, you will have received the benefit of that increase to the detriment of the public who did not know that information. This is an example of:

Question

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Insider trading occurs when someone, usually a corporate insider, buys or sells a security while in possession of inside information. Inside information is any material information about the stock that is unknown to the public.

You Are in Possession of Information That Indicates a Big