Asked by Fatma Elzahraa on Apr 25, 2024

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Which of the following 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

Insider Trading

The illegal activity of trading a public company's stock or other securities by individuals with access to non-public, material information about the company.

Material Nonpublic Information

Confidential, significant information about a company that has not been released to the public and could affect its stock price or investment decisions.

  • Elucidate the concept of insider trading and its consequences within financial markets.
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Verified Answer

SP
Sureshbhai Patel5 days ago
Final Answer :
B
Explanation :
Insider trading is the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.