LSAT 148 | Section 2 | Reading Comprehension: Q16

RC Question 16 Explanation

DISCUSSION: The two authors completely disagree about insider trading: passage A is for it, passage B is against it.

This question is asking for something they agree about. Whatever it is, it surely isn’t insider trading.

___________

1. The author of passage A doesn’t mention this. But, since they’re for insider trading, they likely disagree. The author of passage B agrees with this answer.
2. The author of passage B agrees. The author of passage A thinks it’s more important that information flows as quickly as possible. This can only happen if insiders are allowed to trade as soon as they know something. See lines 16-30 for the emphasis on speed.
3. CORRECT. Both agree on this. In fact, who would disagree with this? I’m sure even Karl Marx would have thought “If someone is a stock investor in a capitalist society, then it’s fine to try to gain an advantage by shrewd analysis.”
4. I think both authors disagree with this answer. The author of passage A specifically says insider nontrading shouldn’t be regulated (lines 35-36). The author of passage B doesn’t mention insider nontrading. But, since it would be very hard to enforce (“buy that stock or we’ll throw you in jail!”), I doubt this author would be for it either.
    
   We’re looking for an answer both authors agree with. This answer would be one that, at best, they both disagree with.
5. The author of passage A agrees with this. The author of passage B hates insider trading. They would instead think that the information should be disseminated in some public way that lets everyone access it at the same time.