When the Alberta Securities Regulator Brought Charges Against Several Executives

question 64

Multiple Choice

When the Alberta securities regulator brought charges against several executives at Grand Cache Coal Corp. because those executives sold company stock just before the company publicly disclosed negative news about its sales, this was an example of

• A) cheque kiting.
• B) insider trading.
• C) misrepresentation of finances.
• D) improper financial management.
• E) whistle-blowing.

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Definitions:

Control Group

In an experiment, the group that is not exposed to the treatment and is used as a benchmark to measure how the other tested subjects do.

Independent Variable

The variable in an experiment that is manipulated or changed in order to test its effects on a dependent variable.

Dependent Variable

A variable in an experiment that is expected to change in response to changes in the independent variable.

Quasi-experimental

A research design that attempts to establish cause-and-effect relationships but lacks random assignment of participants to control or experimental groups.