To Which of the Following Will the 10b Prohibitions on Insider

question 148

Multiple Choice

To which of the following will the 10b prohibitions on insider trading apply?

• A)An officer exercising stock options on the day before the company announces its earnings for the quarter.
• B)An officer exercising stock options on the day before the company reveals an SEC investigation.
• C)An officer exercising stock options on the day before the company announces an earnings reversal.
• D)An officer's son buying stock on the day before the company announces an earnings increase.
• E)All of the above are violations of 10b.

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Definitions:

Water Table

The upper surface of the zone of saturation where water pressure and atmospheric pressure are equal, beneath which soil and rock are saturated with water.

Groundwater Flow

The movement of water through the subsurface soil and rocks, primarily due to gravity and pressure differences.

Subsurface Material

Material located beneath Earth's surface, including soil, rock, and underground water resources, which are accessible through drilling or excavation.

Saturated Zone

The part of the earth's crust where the pores and fractures are filled with water, below the water table.