Why Is Knowing Whether Directors Have Been Purchasing Shares of a Corporation

question 69

Multiple Choice

Why is knowing whether directors have been purchasing shares of a corporation a fundamental right belonging to the shareholders of a corporation?

• A) It permits shareholders to maintain the optimum proportionate share of ownership.
• B) It is the simplest and least costly method of earning capital gains.
• C) It is the simplest and least costly method of soliciting proxies.
• D) It permits shareholders to determine the use of confidential information for personal profit.

---

Definitions:

Ordinary Annuity

An investment product that pays out fixed payments to an individual at regular intervals for a specified period of time, typically used for retirement savings.

Deferred Annuity

A type of annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.

Ordinary Annuity

Consistent payouts distributed at the conclusion of each cycle over an established length.

Deferred Annuity

An insurance product that provides future payments to the holder, starting at a designated date rather than immediately.