Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?
A) identity theft
B) a margin purchase
C) insider trading
D) collusion

Question

Quizplus · Accepted Answer

Insider trading is the illegal use of non-public, material information about a company to make a profit or avoid losses on the stock market. It is a form of securities fraud and can result in serious legal consequences. Identity theft refers to the stealing of personal information to commit fraud or other criminal activities, a margin purchase is when an investor borrows money to buy securities, and collusion refers to secret cooperation between individuals to gain an advantage over others.

Which of the Following Occurs When Someone Uses Confidential Information