Insider Trading Is Prohibited Because Trading on the Basis of Inside

question 28

True/False

Insider trading is prohibited because trading on the basis of inside information can give the trader an unfair advantage over the investing public.

---

Definitions:

Income Elasticity

A measure of how much the demand for a good changes in response to a change in consumer income.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.

Cross-Price Elasticity

The responsiveness level of the quantity of a product needed when there's a fluctuation in the price of another product.

Cross-Price Elasticity

An assessment of how changes in the price of one good affect the demand for another good.