Question

1.Only those who trade on insider information for their own benefit are guilty of a criminal...

1.Only those who trade on insider information for their own benefit are guilty of a criminal violation involving that insider information. True or False

Homework Answers

Answer #1

It is true if you are employee of that Public company. Assume that you are employee of Tata Consultancy Service and you know the coming numbers of TCS and you know how many contracts are company going to get. Based this information employee of TCS is guilty of a criminal violation.

Same scenario being an employee of TCS you know that it is a violation of the rule, so emplyoee passing this into his immediate friends and he and his relatives is trading. In this case both Investor and Employee is responsible for guilty.This is because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make larger profits than a typical investor could make

So answer is both Investor and whoever is responsible for leaking information has to face Criminal Violation; So answer is False

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