When the Price of a Company's Stock Increases or Decreases

question 55

Multiple Choice

When the price of a company's stock increases or decreases significantly in advance of a public announcement of an event affecting the company, there are suspicions  that __________ may have occurred.

• A)bid rigging
• B)default inversion
• C)insider trading
• D)an increase in margin requirements

---

Definitions:

Indentured Servants

Settlers who signed on for a temporary period of servitude to a master in exchange for passage to the New World; Virginia and Pennsylvania were largely peopled in the seventeenth and eighteenth centuries by English and German indentured servants.

British Caribbean

The British Caribbean encompasses the Caribbean territories that were once part of the British Empire, including islands such as Jamaica, Barbados, and the Bahamas, known for their diverse cultures and histories.

Plantation Owners

Individuals or entities that owned large agricultural estates primarily in the Southern United States, often worked by enslaved people before the Civil War.

Crop-Lien System

A credit system that existed in the Southern United States post-Civil War, where farmers, many of whom were sharecroppers, secured loans against future crop yields, often leading to debt and economic bondage.