Insider trading is both unfair and illegal.It occurs when officers,directors,major stockholders,or others trade securities while
A)intoxicated.
B)in prison.
C)in possession of illegal drugs.
D)in possession of "material" nonpublic security information.
E)having relatives working at the firm whose stock they are trading.

Question

Quizplus · Accepted Answer

Insider trading occurs when someone trades securities based on material nonpublic information that is not available to the general public. This gives them an unfair advantage over other investors and is illegal. The other options (A, B, C, and E) are not relevant to the definition of insider trading.

Insider Trading Is Both Unfair and Illegal