Lexy,a Salesperson for My-T-Fine Corporation,learns That My-T-Fine Will In-Crease the Dividend

question 48

Multiple Choice

Lexy,a salesperson for My-T-Fine Corporation,learns that My-T-Fine will in-crease the dividend it pays to shareholders.Lexy buys 10,000 shares of My-T-Fine stock.When the price increases,Lexy sells the shares for a profit.Lexy would not be liable for insider trading if the information about the dividend was

• A)material when she sold the stock.
• B)public after she bought the stock.
• C)public before she bought the stock.
• D)speculative when she bought the stock.

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Definitions:

Genes

The basic physical and functional units of heredity, made up of DNA, that determine the characteristics and traits of an organism.

DNA

DNA, a molecule responsible for carrying the genetic blueprints essential for the growth, development, operation, and reproduction of all recognized living organisms and numerous viruses.

Amniocentesis

A medical procedure used during pregnancy to collect a small sample of the amniotic fluid surrounding the fetus for genetic testing and diagnosing other conditions.

Fluid

In the context of abilities or intelligence, refers to the capacity to think logically and solve problems in novel situations, independent of acquired knowledge.