If an investor hears of a large change that a company is going to make through a news article and reacts quicker than any other investor, it is considered insider trading.

Question

Quizplus · Accepted Answer

Insider trading refers to buying or selling a security based on material, non-public information obtained from an insider of the company. In the given scenario, the investor obtained the information through a news article and not from an insider, hence it is not considered insider trading.

If an Investor Hears of a Large Change That a Company