Q16

[gawker]

Could someone explain this question?

[ohthatpatrick]

Given that these two authors had opposing main points,
psg A - insider trading should be allowed
psg B - insider trading should not be allowed
the correct answer to Q16 will probably test some background point they both made.

1st pass:
(A) Sounds like psg B, not like A. Eliminate.

(B) Sounds like psg B , and maybe A said something similar. It is extreme, though ... "ALL info should be available to ALL participants". Maybe keep it, but I would squiggle it as unlikely.

(C) This could be the answer. Both of them explain the point of the stock market as "trying to act on information in the most strategic way in order to gain an advantage".

(D) Psg B didn't say anything about insider nontrading. Eliminate.

(E) "Best" is too extreme for either author. Eliminate.

After a 1st pass, I'd be looking up (B) and (C), with a bias towards confirming (C).

However, I remember where in psg B they said something like (B). It was early on, line 38-40.

It doesn't seem like that line could support the incredibly bold claim in (B) that ALL info should be available to ALL parties at the same time.

I'd be ready to pick (C) in a pinch, simply through elimination, but let's see if we can confirm support for it.

Lines 8-15 definitely support (C).
Lines 40-45 support (C) from psg B.

C is the correct answer.

[RyanC307]

Passage A appears to contradict answer b), the author supports people using information others don't have. Plus "all the relevant information about a company is spread as quickly as possible" doesn't support b), instead more in line the contradiction