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      Question

      The practice of buying or selling of a security by

      someone who has access to material nonpublic information about the security, is termed as?
      A confidential trading Correct Answer Incorrect Answer
      B private trading Correct Answer Incorrect Answer
      C insider trading Correct Answer Incorrect Answer
      D secure trading Correct Answer Incorrect Answer
      E cross trading Correct Answer Incorrect Answer

      Solution

      Insider trading is the buying or selling of a security by someone who has access to material nonpublic information about the security. Insider trading can be illegal or legal depending on when the insider makes the trade. It is illegal when the material information is still nonpublic

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