The passages' references to the analysis of the information about stocks (lines 11-14, lines 40-42) are related in wh...

Marissa on May 27 at 01:03AM

Why D?

Can someone please explain this question? I picked E. Thank you!

1 Reply

Victoria on May 27 at 03:20PM

Hi @Marissa-Avnaim,

Happy to help!

Let's start by determining the purpose of each sentence within their respective passages.

Passage A begins by describing the crime of insider trading i.e. trading based on information received by virtue of one's position. The second paragraph begins by suggesting that trading based on information that is not public knowledge is "part of the very definition of a functioning stock market."

Lines 11 to 14 describe the process of analyzing stock information, concluding that the use of information that is not public knowledge "...doesn't make you a criminal; it means you've done your homework."

Passage B begins by highlighting that a basic principle of the stock market is transparency i.e. information on stocks is available to everyone at the same time. Lines 40 to 42 describe the process of analyzing stocks in a transparent market.

The second paragraph contrasts the transparent market with insider trading, concluding that using inside information "unfairly compromises the market."

Now that we understand the role that each statement plays in its respective passage, let's go through the answer choices.

Answer choice (A) is incorrect because Passage A presents the analysis of information about stocks as a key part of a functioning stock market.

Answer choice (B) is incorrect because Passage B does not claim that analyzing information is only a viable activity within a transparent market. Rather, the passage claims that success in a transparent market can only be gained by analyzing stock information.

Answer choice (C) is incorrect because Passage A does not claim that this analysis is unfair, nor does Passage B claim that analysis increases the transparency of the market.

Answer choice (E) is incorrect because Passage A does not claim that analyzing information about stocks is an option available only to brokers and other professionals. The passage simply uses the field of stock brokering as an example of this type of analysis.

Answer choice (D) is correct as we outlined above. Passage A suggests that insider trading and analyzing information about stocks are similar activities. Passage B suggests that insider trading is unique because it is unfair and contrary to the underlying principle of transparency.

Hope this is helpful! Please let us know if you have any further questions.