Under this theory,a person's undisclosed,self-serving use of another's information to purchase or sell securities,in breach of a duty of loyalty and confidentiality,defrauds the individual who provided the information.

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The misappropriation theory holds that a person violates Section 10(b)and Rule 10b-5 when he misappropriates confidential information for securities trading purposes,in breach of a duty owed to the individual from whom he learned of the information.Under this theory,a person's undisclosed,self-serving use of another's information to purchase or sell securities,in breach of a duty of loyalty and confidentiality,defrauds the individual who provided the information.

Under This Theory,a Person's Undisclosed,self-Serving Use of Another's Information to Purchase