Self-study
Passage A.
P1
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Intro topic ·
Insider-trading law
Illegal to trade stocks based on info you get before the public because of your position in a company.
P2
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Criticism of insider-trading law ·
Stock market is based on using information that others don't have
It's not illegal to study a stock and trade based on your own analysis. This is similar to trading based on inside info.
P3
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Support for criticism ·
Stock prices represent assessments of company value
P4
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Support for criticism ·
Insider-trading helps spread info about a company
It helps make stock prices more accurate, which is good for the whole stock market.
P5
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Support for criticism ·
Nobody thinks "insider nontrading" should be illegal
People decide not to trade based on inside knowledge. If that's OK, insider trading should be OK, too.
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P6
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Basic principle of stock market ·
Transparency
All info that influences trading decisions is available to everyone at the same time. This means successful stock-trading depends only on skill.
P7
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Perspective on insider-trading ·
Violates principle of transparency
Trading on inside info is unfair.
P8
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Consequence of insider-trading ·
Unfairness causes loss of confidence in market, leads to less investment
Ultimately the whole market could be destroyed.
Passage Style
19.
The passages' references to the ████████ ██ ███████████ █████ ██████
a
Passage A presents ██ ██ ████████████ █████ ███ ████████ ███████████ ██ ███████ █████████ ██ █████ ███████ ███████ ███████ █ ████████ ██ ██ █████████ ███ ██████ █████ ██████████ ██████████
Passage A doesn’t present stock analysis as unnecessary.
b
Passage A uses ██ ██ ██ ███████ ██ ██ ████████ ████ ███████████ ███ ███ ████████ ████ ██ █████████████ ███████ ███████ █ ████ ██ ██ ██ ███████ ██ ██ ████████ █████ █████████ ██ ███████████ ████ ███ ████████████ ██ ███ ███████
Passage A doesn’t suggest that stock analysis “compensates” for the lack of transparency. Passage A doesn’t discuss market transparency or whether something can make up for it. It wouldn’t make sense to say that Passage A uses stock analysis as an example of something it doesn’t even mention.
c
Passage A presents ██ ██ ██ ████████ ████ █████ ████ █████████ ██ ██████ █████████ ████ ███████ ███████ ███████ █ ████████ ██ ██ ██ ████████ ████ █████████ ███ ████████████ ██ ███ ███████
Passage A doesn’t suggest that there’s anything unfair about analyzing stocks and making decisions based on that analysis.
d
Passage A presents ██ ██ ██████████ ██ ███ ███████████ ██ ██████ ████████████ ███████ ███████ █ █████████ ██ ████ ███ ███████████ ██ ██████ ████████████
Passage A thinks stock analysis is similar to acquiring inside information in that both involve knowledge that others don’t have. However, Passage B thinks stock analysis is different from acquiring inside information in that there’s a difference in opportunity. Everyone has the opportunity to analyze stocks; not everyone has the opportunity to get inside information.
e
Passage A treats ██ ██ ██ ██████ █████████ ████ ██ ███████ ███ █████ ████████████ ██████████████ ███████ ███████ █ ██████ ██ ██ ██ ██████ █████████ ██ ████████ █████████ ██ █████
We have no reason to think Passage A thinks stock analysis is something only brokers and professionals can do. Passage A mentions that the field of stock brokering is based on people using their knowledge to “profit themselves or their clients.” “Themselves” could include non-professionals. We have no reason to think “themselves” is limited to professionals.