Insider Trading Involves

question 205

Multiple Choice

Insider trading involves:

• A) an Internet activity that establishes a barter exchange system between businesses.
• B) investors using private company information to further their own fortunes.
• C) the exchange of assets between companies in the same industry.
• D) a payment or reward for socially conscious behavior.

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Definitions:

Upward-sloping

Describes a curve on a graph that moves higher as it goes from left to right, often used to illustrate the relationship between price and supplied quantity in supply curves.

Short-run Supply Curve

A graphical representation showing the quantity of goods that producers are willing to supply at various prices over a short period, where at least one input is fixed.

Perfectly Competitive Market

A theoretical market structure characterized by an infinite number of small firms, homogeneous products, perfect information, and ease of entry and exit.

Demand Increases

A situation in market analysis where the quantity of a good or service that consumers are willing and able to buy rises.