Which of the Following Best Defines Short-Swing Profits

question 33

Multiple Choice

Which of the following best defines short-swing profits?

• A) profits that are made by an insider by selling shares of the corporation prior to the public disclosure of unfavorable information
• B) profits that are made by an insider by personally purchasing shares of the corporation prior to public release of favorable information
• C) profits that are made by a statutory insider on trades involving equity securities of their corporation that occur within six months of each other
• D) profits that are made by a tippee by personally purchasing shares of the corporation prior to or post public release of favorable information

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Definitions:

Public Good

A product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

National Defense

The government functions and mechanisms aimed at protecting a country against external aggression, threats, and maintaining sovereignty.

Free Market

An economic system where prices are determined by unrestricted competition between privately owned businesses, without excessive government control or intervention.

Externality

A consequence of an economic activity experienced by unrelated third parties; it can be either positive (beneficial) or negative (harmful).