A fiduciary's undisclosed,self-serving use of a principal's information to purchase or sell securities,in breach of a duty of loyalty and confidentiality,defrauds the principal of the exclusive use of that information,but does not make the fiduciary an insider.

Question

Quizplus · Accepted Answer

This behavior does indeed make the fiduciary an insider, as insider trading laws cover not just corporate insiders but also those who misappropriate confidential information for securities trading in violation of a duty owed to the source of the information.

A Fiduciary's Undisclosed,self-Serving Use of a Principal's Information to Purchase