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:

General Journal Entry

A basic accounting record used to document all the financial transactions of a business in chronological order.