Which One of the Following Statements Related to Insider Trading

question 41

Multiple Choice

Which one of the following statements related to insider trading is correct?

• A)Licensed stockbrokers are exempt from insider trading laws.
• B)Individuals, such as Martha Stewart, who have been convicted of crimes, can be barred from being executive officers of publicly traded companies.
• C)Because of the increased speed of information flows and the improved efficiency of the markets, insider trading laws were abolished in 2006.
• D)Martha Stewart was convicted of insider trading and subjected both to a fine and a jail sentence.
• E)An investor who receives advice from an investment advisor is automatically charged with insider trading when the advisor bases his recommendations on private information.

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Definitions:

Reality

The state of things as they actually exist, as opposed to how they may appear or might be imagined.

Self-disclosure

The act of sharing personal, private information about oneself with others, contributing to relationship building and trust.

Self-description

The way an individual narrates or describes themselves, highlighting personal qualities or experiences.

Self-analysis

The process of examining one's own thoughts, feelings, and actions to gain insight.