______ is defined as the use of material nonpublic information about a company to make investment profits.
A)Underwriting
B)Insider trading
C)Thrift supervision
D)Self-regulation

Question

Quizplus · Accepted Answer

Insider trading is the use of material nonpublic information, which is not available to the general public, for personal gain by buying or selling a security. This practice is illegal and considered unethical as it gives an unfair advantage to those who have access to the information. Underwriting refers to the process of raising capital by issuing securities, thrift supervision is the regulatory oversight of savings and loan associations, and self-regulation refers to a system of industry regulation where companies regulate themselves rather than being regulated by external authorities.

______ Is Defined as the Use of Material Nonpublic Information