Which standard provides guidelines regarding insider trading?

Which standard provides guidelines regarding insider trading?

• A. Standard A
• B. Standard D
• C. Standard E
• D. Standard B

Answer: (B)

The standard that provides guidelines regarding insider trading is Standard D. This standard outlines the behaviors and practices related to handling non-public, material information, which is critical in maintaining market integrity and ensuring that all investors have fair access to information. By establishing clear guidelines, Standard D helps prevent insider trading, which occurs when individuals use confidential information to benefit their trades, thereby undermining trust in the financial markets.

Understanding these guidelines is crucial for anyone involved in trading or brokerage, as they delineate the legal and ethical practices required to navigate financial dealings responsibly. Understanding and adhering to these practices protects both the individual's reputation and the overall fairness of the market.