▁happening ▁within ▁anal yst s . ▁Anal yst s ▁can ▁take ▁advantage ▁of ▁vague ▁ins ider ▁trad ing ▁laws ▁and ▁this ▁brings ▁of ▁the ▁leg ality ▁of ▁it . ▁Sec ur ities ▁anal yst s ▁can ▁obtain ▁non ▁dis closed ▁information ▁from ▁company ▁ins iders ▁that ▁an ▁average ▁invest or ▁cannot . ▁Under ▁ins ider ▁trad ing ▁law , ▁this ▁advantage ▁is ▁an ▁un law ful ▁method . ▁To ▁combat ▁this ▁issue , ▁confident ial ity ▁agre ements ▁as ▁well ▁as ▁operating ▁under ▁internal ▁policy ▁gu idel ines ▁are ▁in ▁place . ▁Section ▁ 1 0 ( b ) ▁of ▁the ▁Sec ur ities ▁Exchange ▁Act ▁of ▁ 1 9 3 4 ▁and ▁Exchange ▁Act ▁Rule ▁ 1 0 b - 5 ▁falls ▁under ▁the ▁category ▁when ▁unknown ▁trad ers ▁purchase ▁equ ity ▁call ▁options ▁that ▁are ▁millions ▁of ▁dollars . ▁ ▁The ▁m osa ic ▁theory ▁re lies ▁heavily ▁on ▁the ▁U . S . ▁economy ' s ▁fl uct u ation ▁and ▁stock ▁market . ▁Without ▁public ▁corpor ations ▁being ▁transparent , ▁the ▁m osa ic ▁theory ▁would ▁be ▁in effect ive ▁and ▁the ▁stock ▁market ▁would ▁be ▁vulner able ▁to ▁sudden ▁sh ifts ▁as ▁hidden ▁information ▁comes ▁out . ▁Thus , ▁it ▁is ▁illegal ▁for ▁Un ites ▁States ▁public ▁companies ▁to ▁not ▁be ▁transparent ▁with ▁their ▁corpor ate ▁profit ability . ▁ ▁Court ▁C ases ▁ ▁In ▁May ▁ 2 0 1 1 , ▁US ▁District ▁Judge ▁Richard ▁J . ▁How ell ▁sent enced ▁Raj ▁Raj ar at nam ,