According to the _____, any person stealing information from an employee and then trading securities based on that information will have to face insider trading liability.

Question

Quizplus · Accepted Answer

The misappropriation theory is the legal principle that prohibits the trading of securities based on stolen or misappropriated nonpublic information. This means that any person who steals information from an employee and uses it to trade securities will be held liable for insider trading. The other options listed are not relevant to insider trading liability.

According to the _____, Any Person Stealing Information from an Employee