According to the Securities and Exchange Commission (SEC), a person should be considered to be a temporary insider if that person conveys nonpublic information that was to have been kept confidential. This philosophy has become known as the

a. quasi-insider theory.

b. implied-insider theory.

c. temporary insider theory.

d. misappropriation theory.

e. mosaic theory.

Question

Business

Mercedes Macias

5 March, 04:53

According to the Securities and Exchange Commission (SEC), a person should be considered to be a temporary insider if that person conveys nonpublic information that was to have been kept confidential. This philosophy has become known as the

a. quasi-insider theory.

b. implied-insider theory.

c. temporary insider theory.

d. misappropriation theory.

e. mosaic theory.

+4

Answers (1)

Know the Answer?

Maggie Taylor · Answer 1

The correct answer is letter "D": misappropriation theory.

Explanation:

The misappropriation theory states that someone who uses insider information in trading securities is guilty of securities fraud. That person could be convicted for insider trading because this is a deceptive practice. This theory aims to protect the securities markets with equal accessibility to information.