Series 6 - Investment Company And Variable Contracts Products Representative Exam

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All of the following are examples of insider trading EXCEPT:

If the tipper owes a fiduciary duty to a company or its shareholders
A
If the information is material and nonpublic
B
If the insider buys or sells shares of their company or a subsidiary through an advance filing
C
If the tippee knows the information was confidential
D

Explanations

Insider trading is legal if an insider (a director or higher in a company or someone who owns 10% or more of the company) does so through transactions registered with the SEC via advance filings.

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