All of the Following Are Types of Illegal Insider Trading

question 30

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:

Debtors

Individuals or entities that owe money to another party, typically as a result of receiving a loan or credit.

Exemptions

Provisions that allow certain individuals or entities to be excused from observing a particular law or regulation.

Chapter 11

A chapter of the U.S. Bankruptcy Code that provides for reorganization, usually involving a corporation or partnership, allowing the debtor to keep its business alive and pay creditors over time.

Chapter 13

A form of bankruptcy in the United States that allows individuals with a regular income to reorganize their debts and make a plan to repay all or part of them.