PrepTest 148, Section 2, Question 16
Passage A Insider-trading law makes it a crime(495 more words not shown)
Passage A(282 more words not shown)
Passage B(221 more words not shown)
The authors would be most(4 more words not shown)
- Ainsider trading tends(8 more words not shown)
- Ball information should(10 more words not shown)
- Cit is appropriate(12 more words not shown)
- Dinsider nontrading should(9 more words not shown)
- Einsider trading is(9 more words not shown)
Reading the passage
Disagreeing about insider trading doesn't mean these authors disagree about every way an investor can gain an advantage. A praises the investor who analyzes a stock and realizes it's overvalued. B wants success to depend on skill in analyzing information and making decisions.
What we’re looking for
That's our common ground: getting ahead through better analysis is acceptable. Their disagreement concerns the different advantage that comes from access to inside information.
Working the answers
- A
B gives us this loss-of-confidence argument. A emphasizes benefits from informed trading and does not endorse B's claim that insider trading undermines confidence. We need support from both authors.
- B
This matches B's ideal of transparency. A instead defends acting on accurate information before everyone else has it. A wants information spread quickly, but that isn't a requirement that everyone receive it simultaneously.
- CCorrect
A's investor has “done your homework”; B approves success based on “individual merit and skill.” Both accept an advantage earned through superior analysis, even though they disagree about the source of information an investor may use.
- D
B never discusses insider nontrading. A's observation that it goes unpunished cannot establish agreement between the authors about its regulation.
- E
A claims insider trading helps information reach prices, without ranking it as the best method. B objects to the practice. Neither point gives us the shared endorsement this choice requires.
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