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There Are Two Principal Harm-Based Arguments Against Insider Trading

Question 62

Multiple Choice

There are two principal harm-based arguments against insider trading. One is that the practice is harmful to individual investors who have no insider access. The other is that:


A) Permitting insider trading would lead to more bankrupt companies and therefore the loss of jobs.
B) Permitting insider trading would weaken investor confidence.
C) Permitting insider trading would destroy the market quickly.
D) No one should have access to insider information because it is illegal.
E) People like Martha Stewart need to "go to jail once in a while."

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