There Are Two Principal Harm-Based Arguments Against Insider Trading

question 62

Multiple Choice

There are two principal harm-based arguments against insider trading. One is that the practice is harmful to individual investors who have no insider access. The other is that:

• A) Permitting insider trading would lead to more bankrupt companies and therefore the loss of jobs.
• B) Permitting insider trading would weaken investor confidence.
• C) Permitting insider trading would destroy the market quickly.
• D) No one should have access to insider information because it is illegal.
• E) People like Martha Stewart need to "go to jail once in a while."

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Definitions:

Recent Time

A period that has occurred not long ago, often reflecting a contemporary or current state of affairs.

Sexually Transmitted Infection

A disease passed from one person to another via sexual intercourse, resulting from the invasion of organisms like bacteria, viruses, or parasites.

Chlamydia

A common sexually transmitted infection caused by the bacterium Chlamydia trachomatis, which can cause serious reproductive damage if left untreated.

Human Papillomavirus

A group of viruses that can cause warts on the skin or mucous membranes, with certain strains being linked to cancer.