Which Three of the Following Accurately Describe Insider Trading

question 19

Multiple Choice

Which three of the following accurately describe insider trading?

• A) It is likely to be profitable.
• B) It is trading on privileged information.
• C) It is any trading in shares of the company by its employees.
• D) It is illegal.

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Definitions:

Presidential Election

A democratic process in which citizens vote to elect the President of a country.

Judicial Activism

A judicial philosophy advocating judges making decisions that go beyond the strict interpretation of the law to encompass societal needs or real-world outcomes.

Supreme Court

The highest federal court in the United States, consisting of nine justices and having jurisdiction over all other courts in the nation.

Judicial Restraint

A legal philosophy that courts should limit their power to making decisions that are strictly in accordance with the law and the Constitution, avoiding activism or extensive interpretation.