Which of the following statements is true of insider trading?
A. Insiders as well as outsiders can lay legitimate claims on gains from stock sales that take advantage of others.
B. Allowing insider trading deters the employees of a firm from working for the benefit the firm.
C. When an insider-trading stock transaction leads to one person's gain and another's loss, it amounts to fraud.
D. Insider trading holds back information from financial markets that moves stock prices closer to the point that reflects their true value.
Answer: C
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