When inside information becomes public information, profit opportunities:
A) grow.
B) evaporate.
C) remain the same.
D) change in an indeterminate direction.

Question

Quizplus · Accepted Answer

When inside information becomes public information, the advantage of those who had access to the information disappears. As a result, profit opportunities evaporate, since the information is now known by everyone and is already reflected in the market value of relevant securities. Trading on any inside information that has become public is illegal and could lead to legal and regulatory consequences.

When Inside Information Becomes Public Information, Profit Opportunities