Which of the Following Is an Example of Insider Trading

question 83

Multiple Choice

Which of the following is an example of insider trading?

• A)An employee uses material nonpublic information to make a profit by trading in the securities of the company.
• B)A manager purchases all the shares of a corporation available to the public.
• C)A director purchases enough shares of a public company to gain a majority stake in its management.
• D)An employee sells his shares to another employee without notifying the company.

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Definitions:

Overseas Jobs

Employment positions located outside one’s home country, often in a different cultural or economic environment, presenting opportunities for work and travel.

Tax Avoidance

The legal usage of the tax regime to one's own advantage, to reduce the amount of tax that is payable.

Behavioral Economics

An area of economic research that incorporates psychological insights into human behavior to explain economic decision-making.

Rational Economics

An approach to economics that assumes individuals make decisions based on logical evaluation of available information, aiming for maximum utility.