Which One of the Following Statements Is Correct

question 62

Multiple Choice

Which one of the following statements is correct?

• A)Company insiders are not permitted to trade their employer's securities.
• B)Only tippers can be accused of illegal insider trading.
• C)Tippees are permitted to trade securities based on information they know is private.
• D)Trading on private information that you just happen to overhear is legal.
• E)Any trading based on information known to be private is illegal.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at different prices at a given time.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing to offer for sale at each price level.

Resource Costs

The monetary valuation of the resources consumed or used in the production of goods and services, including raw materials, labor, and overhead.

Market Price

The present cost for purchasing or selling a product or service in a market.