Under This Theory,a Person's Undisclosed,self-Serving Use of Another's Information to Purchase

question 37

Multiple Choice

Under this theory,a person's undisclosed,self-serving use of another's information to purchase or sell securities,in breach of a duty of loyalty and confidentiality,defrauds the individual who provided the information.

• A)The classical theory of insider trading liability.
• B)The misappropriation theory of insider trading liability.
• C)The fraud-on the-market theory.
• D)The price disparity theory.

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Definitions:

Court Hearings

Formal sessions held in a court of law where evidence is presented and legal arguments are made before a decision is reached by a judge or jury.

Rules of Evidence

Legal principles that govern the admissibility of evidence in judicial proceedings, ensuring that only relevant and reliable evidence is presented.

Union Contracts

Legal agreements between labor unions and employers that outline wages, working conditions, benefits, and other employment terms for workers.

Just Cause

A legal standard requiring employers to have a fair and factual reason for disciplinary actions or firing employees, typically applied in unionized workplaces.