When Managers and Executives Know More About the Future Plans

question 35

Multiple Choice

When managers and executives know more about the future plans of a company than its shareholders, what is this phenomenon called?

• A) Insider trading.
• B) Information Asymmetry.
• C) Asynchronous Information.
• D) Data Discordance
• E) Insider Advantage.

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Definitions:

Social Dominance Theory

The theory that large societies create hierarchies and that people tend to endorse beliefs thatlegitimatize that hierarchy.

Mortality

The state of being subject to death; the opposite of immortality.

Higher Entitativity

A perception of a group as being a cohesive and unified entity, based on similarities among its members or the strength of their shared identity.

Lower Self-Esteem

A condition where an individual holds a diminished or negative view of their own worth or abilities.