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:

Restitution

A remedy whereby one is able to obtain the return of that which he has given the other party, or an amount of money equivalent to that which he has given the other party.

Disaffirmed Contract

A contract that has been declared void or invalid by one of the parties involved, often due to reasons like lack of capacity or legality.

Ratified

Confirmation or approval of an act or agreement that was not initially authorized by the party in question, making it legally binding.

Reasonable Time

A time frame which is fair and appropriate under the circumstances, often interpreted within the context of contract performance.