__________________Occurs When a Corporate Employee with Direct Knowledge of Market-Sensitive

question 87

Short Answer

__________________occurs when a corporate employee with direct knowledge of market-sensitive information uses it to buy and sell securities, giving the employee-trader an unfair advantage over the general public.

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Definitions:

Partial Equity Method

An accounting technique used for investments, where an investor recognizes income from the investee to the extent of dividends received and adjustments for changes in the investee's net assets.

Dividends

Disbursements from a corporation to its shareholders, typically deriving from the company's profits.

Amortization

The gradual reduction of a debt or the cost of an intangible asset over a specific period of time through regular payments.