All of the Following Are Types of Illegal Insider Trading

question 57

Multiple Choice

All of the following are types of illegal insider trading EXCEPT:

• A) officers or directors who pass valuable information to someone who trades in the company's stock and then is repaid in some way.
• B) an officer or director who makes a direct profit on an investment just after the public announcement of a major development related to that investment.
• C) a director who buys through overseas financial institutions stocks and options in his own company prior to a public announcement of information which greatly enhances the value of the stock.
• D) an officer of a company who, for a fee, related to investment bankers information about companies her company is planning to target for takeover.

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Definitions:

Monozygotic Twins

Identical twins that result from the fertilization of a single egg that then splits into two, sharing 100% of their genetic material.

Dizygotic Twins

Also known as fraternal twins, these are siblings born at the same time but developed from two separate eggs fertilized by two different sperm.

Coefficient Alpha

A statistical measure, also known as Cronbach's alpha, used to assess the reliability or internal consistency of a set of scale or test items.

Split-half Reliability

A measure of the consistency of results across halves of a test, indicating how well two halves of a test measure the same attribute or quality.