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
E) A guarantee

Question

Quizplus · Accepted Answer

Insider trading is the use of confidential information to make a profit or avoid a loss in the stock market. It is illegal and unethical. Identity theft involves stealing personal information, a margin purchase involves borrowing money from a broker to invest in stocks, collusion involves secret cooperation to deceive others, and a guarantee is a promise of performance or satisfaction.

Which of the Following Occurs When Someone Uses Confidential Information