Series 82: Misappropriation Theory

Taken from our Series 82 - FINRA Private Securities Offerings Exam

Definition of the term Misappropriation Theory...

a theory of insider trading which states that anyone who misappropriates (steals) information from her employer and trades on that information in any stock is guilty of insider trading. Anyone who gains insider information, knows it to be confidential, knows it must be kept confidential, and trades on it anyway is guilty of insider trading.

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