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:

Communication

The exchange of information or ideas between individuals or groups.

Sender

The person or entity that initiates a message in the process of communication.

Verbal Feedback

Oral comments or critiques provided to offer guidance, improve performance, or encourage discussion.

Encode

The process of converting information into a particular form, especially to hide or secure its content.