Why Is Knowing Whether Directors Have Been Purchasing Shares of a Corporation

question 69

Multiple Choice

Why is knowing whether directors have been purchasing shares of a corporation a fundamental right belonging to the shareholders of a corporation?

• A) It permits shareholders to maintain the optimum proportionate share of ownership.
• B) It is the simplest and least costly method of earning capital gains.
• C) It is the simplest and least costly method of soliciting proxies.
• D) It permits shareholders to determine the use of confidential information for personal profit.

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Definitions:

Categories

Distinct groups or classes into which data can be classified.

Expected Frequency

The number of times an event is predicted to occur within a specified number of trials or over a given period of time, based on probability.

Observed Frequency

The count of occurrences or instances of a particular event or characteristic in a data set.

Chi-squared Distribution

A distribution used in statistics to test hypotheses about the frequency distribution of observed data compared to the expected distribution if the null hypothesis is true.