Which type of assets are excluded from insider dealing regulations by the CJA?

The correct response highlights unlisted assets as being excluded from insider dealing regulations under the Criminal Justice Act (CJA). This exclusion reflects a specific regulatory approach that acknowledges the nature and trading dynamics of unlisted assets, which are not subject to the same level of market surveillance and reporting as publicly listed securities.

Unlisted assets can include various types of financial instruments that do not trade on a formal exchange, making them less accessible to the general investing public and consequently less likely to be influenced by insider information in the same way that publicly traded stocks and shares would be. As a result, these assets are not encompassed by insider dealing rules, which are primarily designed to protect the integrity of public markets where information asymmetries can lead to unfair trading advantages.

The other types of assets mentioned in the choices—such as shares, ADRs (American Depository Receipts), and warrants—are all associated with public trading mechanisms and are subject to insider dealing regulations. Shares and warrants relate directly to public companies and their equities, while ADRs represent foreign stocks and are also publicly traded securities. Hence, these types of assets do not share the same regulatory exemptions that unlisted assets do. This understanding is crucial for comprehending the regulatory framework surrounding insider trading and how