What does the Tipper/Tippee theory involve?

The Tipper/Tippee theory pertains to the concept of insider trading in securities law, specifically focusing on the sharing and receiving of non-public, material information about a company. Under this theory, a "tipper" is someone who discloses or shares insider information, while a "tippee" is the individual who receives this information and subsequently trades based on it.

Option B rightly captures the essence of this theory by stating that it involves anyone acquiring inside information due to a breach of fiduciary duty or confidentiality by the tipper. This is significant because liability for insider trading can extend beyond just the individuals directly holding the insider status (the tipper); it also encompasses those who receive the information (the tippee) and act upon it. The theory highlights that even individuals who are not corporate executives or insiders can be held accountable if they trade based on such illegally obtained information.

In contrast, the other options narrow the scope unnecessarily. For instance, only specifying senior executives (A) overlooks that many others might become tippees or tippers in the trading process. C, which suggests only institutional investors, ignores that insider information can be shared with any party, not just large entities. Similarly, D limits the context to external consultants, which again