Photo AI
An employee of a bank becomes aware of confidential information which will increase the bank’s share price - HSC - SSCE Legal Studies - Question 10 - 2016 - Paper 1
Question 10
An employee of a bank becomes aware of confidential information which will increase the bank’s share price. Before the information is publicly released, the employee... show full transcript
Worked Solution & Example Answer:An employee of a bank becomes aware of confidential information which will increase the bank’s share price - HSC - SSCE Legal Studies - Question 10 - 2016 - Paper 1
Step 1
What is this an example of?
Answer
This situation is an example of an economic offence. The act of using non-public, confidential information to make financial gains in the stock market qualifies as insider trading, which is categorized under economic offences. Such actions undermine the fairness and integrity of financial markets, as they lead to unequal information dissemination among investors.