A person would be committing Insider trading if the person

A person would be committing Insider trading if the person
A . gave professional advice to company insiders
B . knowingly traded based on material Information undisclosed to the public
C . ware an executive purchasing shares in the company that the parson worked for
D . sold shares in a company following a news release, knowing the value of the shares would fall

View Answer

Answer: B

Explanation:

Insider trading occurs when a person knowingly trades based on material information that has not been disclosed to the public (Option B). This action is considered unethical and illegal because it uses confidential information for financial gain, giving an unfair advantage over other investors who do not have access to this information. Regulations typically prohibit trading based on such insider knowledge to ensure fairness and transparency in the financial markets.