When Considering Insider Trading, the "Insiders" of a Reporting Issuer

question 34

Multiple Choice

When considering insider trading, the "insiders" of a reporting issuer are

• A) its directors and senior officers.
• B) the directors and senior officers of its parent or subsidiary firms.
• C) its shareholders with more than 10 percent of outstanding voting rights.
• D) the reporting issuer itself (the company is its own insider).
• E) All of these are reporting issuers.

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Definitions:

Multiple-Regression Formula

An equation that models the relationship between a dependent variable and two or more independent variables, predicting the dependent variable based on the independents.

Dependent Variable

A variable in an experiment or model that is expected to change in response to manipulations of the independent variable(s).

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Criterion Variable

The dependent variable that researchers are interested in predicting or understanding in an experiment.