Reading Comprehension

PT148 · S2 · P3 · Q15 Insider-Trading

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Passage A Insider-trading law makes it a crime to make stock transactions, or help others make stock transactions, based on information you have ahead of the general public because of your special position within a company.

Topic

Arguments for and against insider trading in the stock market

Framework

Present Debate

Main Point

Passage A argues that insider trading helps make stock prices more accurate and benefits the market, while Passage B argues that insider trading undermines fairness and investor confidence. - The Most Valuable Sentences: - Passage A: (Fourth paragraph) - Passage B: (Second paragraph)

P1 (Passage A): Definition of Insider Trading

Explains what insider trading is—using special, non-public info to trade stocks or help others trade.

P2 (Passage A): Questioning the Logic

Questions whether using exclusive information isn’t just what markets are all about; says the job of a stockbroker is to use information that others may not have yet.

P3 (Passage A): How Markets Work Best

Claims markets work best when information spreads quickly and widely, and that allowing people with good info to act helps prices reflect reality.

15.

In their attitudes toward stock trades based on inside information, the author of passage A and the author of passage B, respectively, may be most accurately described as

  1. positive and neutral

    Trap

    1% picked this

  2. Correct

    positive and negative

    Why this is right

    Answer B is correct.

    Skill tested: Author's Attitude · how this choice captures the passage's function is the move to repeat next time.

    93% picked this

  3. neutral and negative

    Trap

    4% picked this

  4. neutral and neutral

    Trap

    1% picked this

  5. negative and negative

    Trap

    0% picked this

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