One of these terms is not a form of insider trading, that is, using nonpublic information to make decisions based on an individual's self-interests rather than those of the firm.
A) Traditional theory
B) Temporary insiders
C) Ponzi schemes
D) Tippers and tippees

Question

Quizplus · Accepted Answer

Traditional theory refers to the classical concept of insider trading where insiders of a firm use nonpublic information to make trading decisions. Temporary insiders are individuals who temporarily acquire insider information, such as consultants or contractors who work with a company. Tippers and tippees are individuals who share nonpublic information with others and use it to make trading decisions. Ponzi schemes, on the other hand, are a type of investment fraud where returns are paid to earlier investors using the capital of newer investors, rather than from actual profit earned by the scheme. While this is illegal, it is not a form of insider trading.

One of These Terms Is Not a Form of Insider