Nester,a Salesperson for Olive Grove Corporation,learns That Olive Grove Will

question 21

Multiple Choice

Nester,a salesperson for Olive Grove Corporation,learns that Olive Grove will increase the dividend it pays to shareholders. Nester buys 10,000 shares of Olive Grove stock. When the dividend is announced to the public and the price of the stock increases,Nester sells his shares for a profit. Nester would not be liable for insider trading if the information about the dividend was

• A)material when he sold the stock.
• B)available to the public after he bought the stock.
• C)available to the public before he bought the stock.
• D)forward-looking when he bought the stock.

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Definitions:

Alteration

A change or adjustment made to something, which can modify its appearance, function, or condition.

Charge Account

An arrangement allowing customers to purchase goods or services on credit and settle the balance periodically, without immediate payment at each transaction.

Maker

The individual or entity that creates or signs a negotiable instrument, committing themselves to pay a specified amount of money to the payee or holder.

Primarily Liable

The primary obligation or responsibility to fulfill a debt or legal duty before others are considered liable.