SIE practice questionmediumInsider Trading - Tipper/Tippee
An employee gives nonpublic, material information about a company to a friend who trades on it. What are the roles of the employee and the friend?
- AAgent and principal, respectively
- BTipper and tippee, respectively✓ Correct answer
- CDealer and customer, respectively
- DTrustee and beneficiary, respectively
Explanation
Why B — Tipper and tippee, respectively
The 'tipper' gives the information, the 'tippee' receives/use it for trading. The other terms describe unrelated relationships in finance.
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