According to insider trading rules of the SEC, securities analysts and financial writers may not trade on insider information, but these rules do not extend to relatives and friends.

Question

Quizplus · Accepted Answer

The Securities Exchange Act of 1934 (and amended over the last two decades) set the guidelines for insider trading, which now includes securities analysts, financial writers, relatives, friends, and anyone having information which was not public knowledge.

According to Insider Trading Rules of the SEC, Securities Analysts