All of the Following Are Types of Illegal Insider Trading

question 70

Multiple Choice

All of the following are types of illegal insider trading EXCEPT:

• A)officers or directors who pass valuable information to someone who trades in the company's stock and then is repaid in some way.
• B)an officer or director who makes a direct profit on an investment based on information gained just after the public announcement of a major development.
• C)an officer or director who buys stock and options through overseas financial institutions in his own company prior to a public announcement of information which greatly enhances the value of the stock.
• D)an officer or director of a company who related information for a fee to investment bankers on companies his company is planning to target for takeover.

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Definitions:

Closing

The process of finalizing accounts at the end of an accounting period by clearing any balances and summarizing the financial activities.

Revenue Account

An account that records the income generated from a company's primary operations, such as sales of goods or services.

Post-closing Trial Balance

A summary of all the business accounts after the closing entries are made at the end of the accounting period, ensuring the accounts are balanced.

Trial Balance

A summary listing of the titles and balances of accounts in the ledger, which is used to verify that debits equal credits.