SIE practice questionmediumSEC Rules - Tippers and Tippees
If a corporate insider gives confidential information to a friend who then trades on it, the friend is known as:
- AA tippee, who may be liable for insider trading✓ Correct answer
- BA broker-dealer
- CA compliance officer
- DA securities analyst
Explanation
Why A — A tippee, who may be liable for insider trading
The 'tippee' is the person who receives and acts on insider information. Broker-dealers, compliance, and analysts are not specific to this violation.
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