Investors sharing information about stocks is an example of white-collar crime as a violation of criminal law.

a. True
b. False

Question

28-10-2023
Law

College

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Investors sharing information about stocks is an example of white-collar crime as a violation of criminal law.

a. True
b. False

Answer :

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AntonHugh AntonHugh · Answer 1 · 2025-05-20T00:26:02-04:00

Final answer:

Option b. False. Investors sharing publicly available stock information is not a crime, but if they share non-public, insider information for trading, it is considered insider trading, a white-collar crime.

Explanation:

Investors sharing information about stocks is not inherently a white-collar crime. White-collar crimes are characterized by deceit, concealment, or violation of trust, and are financially motivated. If the shared stock information is public knowledge, then the act of sharing this information is not illegal. However, if the information is non-public and obtained through a breach of duty or trust, such as in the case of insider trading, then it is considered a white-collar crime and a violation of criminal law. Insider trading involves taking unfair advantage of non-public information for personal gain, and it was made illegal in the United States in the 1930s. Martha Stewart's case is a well-known example of how insider trading is prosecuted.

Investors sharing information about stocks is an example of white-collar crime as a violation of criminal law.a. True b. False

Answer :

Final answer:

Explanation:

Other Questions

Investors sharing information about stocks is an example of white-collar crime as a violation of criminal law.

a. True
b. False