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Insider trading is most commonly described as

A- investors using information that is not available to the public in investing
B- government agreements on taxing and spending
C- trading amongst a small inner circle of investors without public knowledge
D- a legal way to buy over the counter stocks

User Mit Bhatt
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1 Answer

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Answer:

Among the options given on the question the correct answer is option A.

Investors using information that is not available to the public in investing.

Explanation: Insider trading is now an alarming subject in any business institution. Insider trading means trading of a public company stock or security to any outsider investor which contains non public information.

The goal this insider trading is to gain illegal benefits by any investor who wants gain more profit than other investors.Because through the insider trading he/she know the information that the other don't know. As a result, they get extra facilities in stock market and gain vast profit.

However, now there is law that if a person get this kind of information through any give and take activities he will be prosecuted in the court and will be punished if proved as guilty.

But there are both critics and advocates for the insider trading which made this as a controversial issue.

User Gaurav Rawat
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