Insider Trading Is the Use of Nonpublic Information About a Security

question 3

True/False

Insider trading is the use of nonpublic information about a security to gain a profit.

---

Definitions:

Shadow Price

The implied worth or value of an intangible or constrained resource, used in economic or optimization models to assess opportunity costs.

Dual Value

A concept in linear programming and optimization, representing the worth of relaxing a constraint by one unit in the objective function.

Redundant Constraint

A constraint in a mathematical model that does not affect the feasible region or solution because it is already implied by other constraints.

Linear Programming

A mathematical methodology used to achieve the best outcome in a model with linear relationships, subject to constraints, commonly applied in optimization scenarios.