DISCUSSION: This question asks about lines 11-14 and lines 40-42. To answer this question, you absolutely must read the two lines to see how they compare.
- Both lines mention using superior skill and analysis to profit in the stock markets
- However, passage A points out that the result of this analysis is information. Information that only you have.
Passage A is thus making an analogy between stock analysis and insider trading. Passage B thinks it is different: they present lines 40-42 as good ways to trade stocks, and say that insider trading as bad.
___________
- Passage A doesn’t think stock information is unnecessary. In lines 8-10 they say “the entire field of stock brokering is based on” getting information others don’t have.
- Passage A doesn’t mention stock market transparency. Only passage B uses this concept.
- Both parts of this are wrong. Passage A doesn’t seem to think any information advantage is unfair: they’re arguing for insider trading after all. Passage B doesn’t mention insider trading as being a factor contributing to transparency. They focus on eliminating insider trading as a way to increase transparency. (Indeed, lines 43-45 start with “In a transparent stock market”), implying that the author thinks that lead of insider trading leads to transparency, and that leads to the ability to use skill in analysis.)
- CORRECT. See the analysis above. Passage A points out that market skill leads to information advantages. This is very clear in lines 6-14.
In passage B, the first paragraph makes clear that trading based on skill is good: it says “success is based on individual merit and skill” (lines 43-45). Insider trading, by contrast, is painted as something that “unfairly compromises” the market (line 50). - This is a trap. Passage A mentions that the field of brokering is based on analysis. But they didn’t say that only brokers can do this. Anyone who can “analyze a stock, decide if it is overvalued, and sell it” can trade stocks based on private information.
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