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Insider trading is considered patently unethical and unfair because it prevents fair pricing based on equal access to public information

True or false

User Indre
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1 Answer

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Final answer:

True. Insider trading is considered unethical and unfair because it violates the principle of equal access to public information, preventing fair pricing based on that information.

Step-by-step explanation:

True. Insider trading is considered unethical and unfair because it violates the principle of equal access to public information, which is essential for fair pricing in the stock market. Insider trading occurs when someone with privileged, non-public information about a company's stock trades based on that information, giving them an unfair advantage over other investors. By trading on insider information, these individuals can make profits at the expense of other investors who do not have access to the same information.

User Daniel Krizian
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