The Use of Special Knowledge About a Firm,which Results in an Unfair

question 78

Multiple Choice

The use of special knowledge about a firm,which results in an unfair advantage or generates profit or other types of gain,is known as what?

• A) Equity financing
• B) Market capitalization
• C) Insider trading
• D) Prospectus information
• E) FINRA violation

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Definitions:

Principal Collection

The process of receiving the original amount borrowed in a loan, excluding any interest payments.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, represented in the cash flow statement, that are not related to the entity's primary business operations.

Cash Outflow

Money or cash disbursed by a business for various purposes like operating expenses, investment, and financing activities.

Inventory Purchase

The acquisition of goods and materials that a company intends to sell or use in production, recorded as an asset on the balance sheet until sold.