Trading on information not yet publicly announced can
A)improve diversification.
B)be an acceptable asset allocation strategy.
C)be considered illegal.
D)lessen diversification.

Question

Quizplus · Accepted Answer

Trading on information not yet publicly announced is known as insider trading and is illegal in most countries. It involves using non-public information to gain an advantage in the market, which is considered unethical and can result in severe legal consequences. Therefore, choice C is the correct answer.

Trading on Information Not Yet Publicly Announced Can