Using information not available to the public to unfairly benefit in the stock market represents
A) security fraud.
B) an unethical, but a legal activity.
C) blue-sky violations.
D) insider trading.

Question

Quizplus · Accepted Answer

Using non-public information to benefit in the stock market is known as insider trading and is illegal. Therefore, option D is the correct choice. A is incorrect because while insider trading may fall under the umbrella of securities fraud, it is a specific type of violation. B is also incorrect because insider trading is not ethical or legal. C is not relevant to the situation described.

Using Information Not Available to the Public to Unfairly Benefit