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:

Variable Expenses

Costs that change in proportion to the activity or volume of production in a business.

Selling Costs

Expenses incurred directly from the sale of a product or service, including marketing, advertising, and sales personnel expenses.

Maximum Price

The highest price that can be charged for a product or service, possibly regulated by law or market conditions.

Transmission Division

A specialized unit within a company or organization focused on the development, production, or maintenance of transmission systems.