Insider trading occurs when
A) someone has information not available to the public which they use to profit from trading in stocks.
B) corporate officers buy stock in their company.
C) lawyers, investment bankers, and others buy common stock in companies represented by their firms.
D) any stock transaction that violates the Federal Trade Commissions restrictions.

Question

Quizplus · Accepted Answer

Insider trading occurs when someone has information that is not available to the public which they use to profit from trading in stocks. This is illegal because it gives the insider an unfair advantage over other traders who do not have access to the same information. Corporate officers buying stock in their company, lawyers and investment bankers buying stock in companies represented by their firms, and any stock transaction that violates the Federal Trade Commissions restrictions may or may not be illegal depending on the circumstances, but they are not necessarily insider trading.

Insider Trading Occurs When