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:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, organizing human needs into a five-level pyramid, from basic physiological needs to self-actualization.

Physiological Needs

The basic, essential life needs such as food, water, and shelter that must be met in order for an individual to survive and function properly.

Safety Needs

The second level in Maslow's hierarchy of needs, encompassing the human desire for security, safety, and physical well-being.

Managerial Ethics

Principles and standards that guide behavior in the world of business, including fairness, honesty, and integrity.