Which of the Following Statements About Insider Trading Is (Are)true

question 6

Multiple Choice

Which of the following statements about insider trading is (are) true?

• A)Employees of a firm are not allowed to buy and sell shares of their company's stock except through a trustee.
• B)Insiders are allowed to buy and sell shares of their company's stock as long as their trades are not based on information that has not yet been released to the general public.
• C)Any executive who buys and sells shares of his or her own company's stock is guilty of violating his or her fiduciary obligation to the firm's shareholders.
• D)Both A and B are true.

Understand the concept of marginal decision-making in economics.

Identify and calculate opportunity costs in different scenarios.

Describe the concepts of average and marginal costs in production.

Explain the trade-offs faced by individuals and societies.

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Definitions:

Net Profit Margin Percentage

A financial metric that shows the percentage of revenue remaining as net income after all expenses, taxes, and costs have been deducted.

Return on Total Assets

measures a company's efficiency in using its assets to generate profit, calculated by dividing net income by total assets.

Total Assets

The sum of all current and non-current assets owned by a company, including cash, inventory, property, and equipment.

Gross Margin Percentage

A financial metric that represents the gross margin as a percentage of total sales revenue, indicating the efficiency of a company in producing and selling goods.