The Major Difficulty in Most Insider-Trading Cases Has Been

question 28

Multiple Choice

The major difficulty in most insider-trading cases has been

• A) that lenient judges have simply released the guilty individuals.
• B) that insider trading, even though illegal, actually serves a beneficial economic and financial purpose.
• C) that inside trades have not been legally well-defined.
• D) that it is hard to figure out which owner(s) benefited from the trade.

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Definitions:

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wages, and insurance premiums.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no net gain or loss.

Sales Mix

The combination of products or services that a company sells, which significantly impacts its profitability.

Fixed Costs

Costs that do not change with the level of goods or services produced by the business.