Which of the Following Would Be an Example of Insider

question 28

Multiple Choice

Which of the following would be an example of insider trading?

• A)A person uses confidential information that is not publicly available and profits by purchasing shares based on that information.
• B)A person asks their friend to purchase shares for them.
• C)A person purchases shares on the stock market without knowing whether those shares will appreciate in the future.
• D)A person uses publicly available information to purchase shares on the stock market.

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Definitions:

Intragroup Transactions

Financial transactions that occur between enterprises under common control, typically within the same corporate group.

Ownership Interest

The legal rights and claims a person or entity has over property or a company, often evidenced by shares or other forms of equity.

Non-controlling Interest

A portion of equity ownership in a subsidiary not owned by the parent company, representing a minority interest's share in the subsidiary's net assets and earnings.

Consolidation Worksheet

A tool used by accountants to combine the financial statements of a parent company with its subsidiaries, leading to consolidated financial statements.