Insider Trading Is Both Unfair and Illegal

question 229

Multiple Choice

Insider trading is both unfair and illegal.It occurs when officers,directors,major stockholders,or others trade securities while

• A)intoxicated.
• B)in prison.
• C)in possession of illegal drugs.
• D)in possession of "material" nonpublic security information.
• E)having relatives working at the firm whose stock they are trading.

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Definitions:

Creditors

Entities or individuals to whom money is owed.

Assets

Resources or items of value that an individual or organization owns or controls with the expectation that it will provide future benefit.

Resources Owned

Assets or possessions that are held by an individual, an organization, or a country.

Proprietorship

A business owned and operated by a single person, making it the simplest form of business ownership.