Asked by Jordan Jeyachandran on Apr 27, 2024
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Anyone who has access to or receives inside information of a nonpublic nature and trades on it for personal gain can be liable under SEC Rule 10b-5.
SEC Rule 10b-5
A rule of the Securities and Exchange Commission that prohibits the commission of fraud in connection with the purchase or sale of any security.
Inside Information
Privileged, non-public knowledge about the matters of a company that could provide an unfair advantage in financial trading or business decisions.
Personal Gain
The advantage or benefit obtained for oneself, often in a financial or material sense.
- Comprehend the notion of insider trading along with its legal ramifications.
- Acquire knowledge about the obligation linked to misrepresentation and deceit in the marketing and exchange of financial instruments.
Verified Answer
Learning Objectives
- Comprehend the notion of insider trading along with its legal ramifications.
- Acquire knowledge about the obligation linked to misrepresentation and deceit in the marketing and exchange of financial instruments.
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