Before It Was Publicly Known That IBM Was Going to Take

question 29

Multiple Choice

Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were:

• A) acting really smart.
• B) engaging in insider trading.
• C) stealing from IBM.
• D) acting fairly.

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Definitions:

Unrealized Capital

Refers to an increase or decrease in the value of an investment that has not been sold and thus the gain or loss has not been realized.

Organization Expense

Costs associated with the formation of a corporation or organization, such as legal fees and registration charges.

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits via dividends.

Organization Expenses

Costs incurred in the formation of a corporation, partnership, or other business entity, typically including legal and registration fees.