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:

Making Loans

The act of providing funds to an individual or organization with the expectation that the funds will be repaid, often with interest, over a specified period.

Creditors

Individuals or entities to whom money is owed by a debtor, who has borrowed funds or purchased goods/services on credit.

Bankruptcy

A judicial procedure allowing people or companies that are incapable of fulfilling their debt payments to obtain exemption from paying off some or all they owe.

Sell Interest

To transfer one's ownership stake in a company or property to another party, often for compensation.