When an Insider Discloses Material Insider Information to a Non-Insider

question 62

Multiple Choice

When an insider discloses material insider information to a non-insider tippee,the tipper is liable for:

• A) the tipper's own trading only
• B) the tippee's profits,but not the profits made by any remote tippees
• C) the profits of both the immediate tippee and the profits of any remote tippees
• D) the profits of all traders during the period before the information became public

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Definitions:

Federal Income Tax

The tax levied by the U.S. federal government on individuals and entities based on their annual income, with different rates applied to different income ranges.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, recognized as an expense.

Social Security Tax

A tax that funds the Social Security program, which provides retirement benefits, disability income, and other payments to eligible individuals.

Payroll Tax Expense

The taxes that an employer incurs based on employee wages, including Social Security and Medicare taxes.