The Securities and Exchange Commission's Fraud Rule Prohibits Trading on the Basis

question 36

Multiple Choice

The Securities and Exchange Commission's fraud rule prohibits trading on the basis of inside information of a business corporation's stock by

• A) Officers
• B) Officers and directors
• C) All officers, directors, and stockholders
• D) Officers, directors, and beneficial holders of 10 percent of the corporation's stock

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Definitions:

Vesting

The process by which an individual gains an unconditional right to an asset or benefit, often used in the context of retirement plans or stock options.

Beneficiary's Rights

The legal entitlements of a beneficiary, such as to receive benefits or assets from a trust, will, or insurance policy.

Modification or Discharge

The act of changing the terms or conditions of a contract or agreement, or releasing parties from their obligations under it.

Identical in Every Jurisdiction

A statement indicating that a legal principle or rule applies uniformly across all legal jurisdictions, though this is relatively rare due to variations in laws.