Which of the Following Is an Example of Insider Trading

question 31

Multiple Choice

Which of the following is an example of insider trading?

• A) The marketing manager of a company is accused of using company resources for personal use.
• B) An executive receives a compensation comprising of cash, paid expenses, and shares of the company.
• C) An employee hacks the firm's computer networks, systems, and databases to obtain customer records so that he can sell the information to rival firms.
• D) The chief executive officer of an IT company purchases shares in the company as he learns that the company is being taken over by a leading, global IT firm.
• E) A firm disseminates fraudulent information in chat rooms, forums, Internet boards, and via email, with the purpose of causing a dramatic price increase in thinly traded stocks of the company.

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Definitions:

Financial Statements

Compiled official records that detail the financial activities and condition of a business, organization, or individual, including income statement, balance sheet, and cash flow statement.

Marketing Outcome Data

The results and metrics that are collected to assess the effectiveness and success of marketing activities.

Repeat Sales Reports

Documents that track and analyze the frequency and volume of products or services purchased by the same customer over time.

Social Media Posts

Social media posts are content created and shared on social media platforms like Facebook, Twitter, and Instagram, used for communication, marketing, and sharing information.