Which of the Following Constitutes Insider Trading

question 29

Multiple Choice

Which of the following constitutes insider trading?

• A) an employee makes a profit by personally purchasing shares of the corporation prior to public release of favorable information
• B) a manager purchases all shares of a corporation available to the public
• C) a director purchases enough shares of a public company to gain a majority stake in its management
• D) an employee sells his shares of the company to another employee without notice to the company

---

Definitions:

Negatively Skewed Distribution

A distribution shape where the tail is on the left side, indicating that the bulk of values are concentrated on the right.

Mode

The number that occurs the greatest number of times in a series of data.

Median

The middle value in a data set when the values are arranged in order, or average of the two middle values when there is an even number of observations.

Mean

The average value of a set of numbers, calculated by adding all the numbers together and dividing by the count of the numbers.