Market abuse · Question 7 of 12
What is insider trading?
1 answer is correct. Easy
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Answer
- A Transactions using non-public, price-relevant information
Explanation
Anyone who trades on inside information, for example about an upcoming takeover, gains an unfair advantage. This is prohibited in the EU under the Market Abuse Regulation and a criminal offence in Germany. Once the information has been published, it is no longer inside information.