Which of the Following Is NOT True Regarding the Misappropriation

question 55

Multiple Choice

Which of the following is NOT true regarding the misappropriation theory of insider trading?

• A) If a trader discloses to a source of nonpublic information that he or she plans to trade on the basis of that information,there is no violation under the misappropriation theory.
• B) Liability under the misappropriation theory requires deception.
• C) The misappropriation theory widens the class of persons who can be found liable for insider trading.
• D) The trader cannot be held liable unless he or she is an insider of the company whose securities are traded.

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Definitions:

Federal Government

The national government of a federation that has authority over the individual member states, and is responsible for areas such as defense, foreign affairs, and the economy.

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An American economist and Nobel Prize laureate recognized for his research in consumption analysis, monetary history and theory, and the complexity of stabilization policy.

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Concepts often linked in political and economic discourse, suggesting that economic success leads to or enhances personal and civic liberties.

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The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.