Under the _____, a person's undisclosed, self-serving use of another's information to purchase or sell securities, in breach of a duty of loyalty and confidentiality, defrauds the individual who provided the information.

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The misappropriation theory holds that a person violates Section 10(b) and Rule 10b-5 when he misappropriates confidential information for securities trading purposes, in breach of a duty owed to the individual from whom he learned of the information. Under this theory, a person's undisclosed, self-serving use of another's information to purchase or sell securities, in breach of a duty of loyalty and confidentiality, defrauds the individual who provided the information.

Under the _____, a Person's Undisclosed, Self-Serving Use of Another's