Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

misappropriation theory

Read a random definition: aleatory

A quick definition of misappropriation theory:

The misappropriation theory is a rule that says if someone uses secret information to buy or sell stocks, and they were not supposed to have that information, then they are committing a crime. This is because they are taking advantage of information that other people don't have, which is not fair. It's like cheating in a game. If you cheat, you're not playing by the rules, and that's not okay.

A more thorough explanation:

Misappropriation theory is a legal concept that applies to securities fraud. It states that if someone uses confidential information to buy or sell securities, and they owe a duty to the person who provided that information, then they are guilty of securities fraud.

For example, let's say that a lawyer is working on a merger between two companies. The lawyer learns confidential information about the merger that is not yet public knowledge. If the lawyer then uses that information to buy or sell securities in one of the companies involved in the merger, they are guilty of securities fraud under the misappropriation theory.

Another example could be a financial analyst who learns confidential information about a company's upcoming earnings report. If the analyst uses that information to buy or sell securities in that company, they are also guilty of securities fraud under the misappropriation theory.

The misappropriation theory is designed to protect the integrity of the securities market and prevent insider trading. It ensures that people who owe a duty to others to keep information confidential do not use that information for personal gain in the securities market.

misapplication | misbehavior in office

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
13:29
I'm at your mommas house rn: https://x.com/Mansavelli_/status/1648073454665572352
triplethread
13:29
im addicted to reacting to all of the decisions
triplethread
13:29
with the emojis
HopefullyInLawSchool
13:29
I shop at Joe
HopefullyInLawSchool
13:29
Joe's
glovediedthisishismom
13:30
i shop at tawget
glovediedthisishismom
13:30
im dawk gawthic maga
triplethread
13:30
i shop at giant eagle
ForDizzyDJoy
13:31
How did i miss Fordham and American’s wave and I applied in september 🙃
13:33
Lol UC Davis took me of ED and put me in RD
13:34
surprised I didnt get straight denied
HopefullyInLawSchool
13:34
they emailed you/
HopefullyInLawSchool
13:34
?
13:35
@HopefullyInLawSchool: Yea, I just got it
i just want a cornell ii :(
13:37
yak you will be fucking shit up at cornell this time next year dw
i love u
13:38
love you too bby
glovediedthisishismom
13:42
what if desantis appoints lara trump and matt gaetz to be floridas senators
Dkk
13:42
Sounds good to me
HopefullyInLawSchool
13:43
@glovediedthisishismom: What if he appoint Ym instead?
HELP
every damn opportunity
13:47
do schools straight reject people from ed or to they always ed-rd if its a no for ED?
HopefullyInLawSchool
13:48
Some schools rject
13:49
Thanks! I couldn't find any reddit thread about it lol
13:49
but just means now I have to wait for the rejection from Davis
glovediedthisishismom
13:53
i just wanna rock
glovediedthisishismom
13:53
bodyadaya
13:53
let it rock
LSD+ is ad-free, with DMs, discounts, case briefs & more.