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:

Self-enhancement

The desire to maintain, increase, or portray one's self in a positive light to others and oneself.

Defensive Strategy

Tactics used by individuals or groups to protect themselves from perceived threats, criticism, or harmful situations.

Compensation

Payment or reward given for service, effort, or loss.

Anxiety-buffer Conception

A theory suggesting that certain psychological constructs help individuals manage and lessen their anxiety about mortality and life's uncertainties.