Which One of the Following Items Is Most Apt to Be

question 28

Multiple Choice

Which one of the following items is most apt to be considered material nonpublic information? Assume that none of this information is known publicly.

• A)Barbara knows that Sue, an accounting clerk, is planning on resigning on Friday.
• B)Linda knows a new receptionist has just been hired.
• C)Wendy knows that her firm's net income is continuing to increase at a steady rate.
• D)Tracy knows her employer just received patent approval on a key new product.
• E)Maria is the chief financial officer and knows the firm intends to maintain its current dividend policy.

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Definitions:

Marketable Securities

Marketable securities are liquid financial instruments that can be quickly converted into cash at a price close to their market value.

Flexible Policy

A strategy or approach that allows for adjustments and modifications in response to changing conditions or information.

Liberal Credit Terms

Credit conditions that are lenient, offering borrowers lower interest rates or extended repayment terms.

Restrictive Policy

A policy intended to limit or regulate certain activities, often used in the context of fiscal or monetary policy to control economic variables.