SIE (Securities Industry Essentials) 2025 – 400 Free Practice Questions to Pass the Exam!

Question: 1 / 400

Under which of the following circumstances is an employee of a public company allowed to trade upon information without breaching insider trading laws?

After overhearing it in a company meeting

From a confidential company email

An independent securities analyst's explanation

An employee of a public company is only allowed to trade upon information if it is from an independent securities analyst's explanation. The other options (overhearing it in a company meeting, from a confidential company email, or decoding encrypted company data) all involve obtaining the information directly from the company, which would be considered insider trading and therefore illegal. Only information obtained from a third-party source, such as an independent securities analyst, would not violate insider trading laws.

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By decoding encrypted company data

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