Which One of the Following Is Most Apt to Be

question 31

Multiple Choice

Which one of the following is most apt to be considered insider trading?

• A)Amy overhears Mary say she is being promoted to accounts payables manager and then she purchases shares in Mary's employer.
• B)Jennifer compiles the financial statements and knows that net income for the latest quarter is significantly below analyst's forecasts but continues to hold shares of her employer's stock.
• C)Kathy is an outside auditor and has found what she believes are significant accounting irregularities in a company's financial reports but owns no shares in the firm.
• D)Lee buys stock in Winter's Wear after he overhears a conversation between the firm's president and vice-president concerning a proposed acquisition.
• E)Jeff buys shares of stock in his employer's firm through the company retirement plan on a regular monthly basis.