Which of the Following Occurs When Someone Uses Confidential Information

question 1

Multiple Choice

Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?

• A) Identity theft
• B) A margin purchase
• C) Insider trading
• D) Collusion
• E) A guarantee

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Definitions:

Forecasting External Financing

It involves predicting the amount of external funding a company will need to support its anticipated growth and operational needs.

Management Team

The group of individuals responsible for the strategic planning and day-to-day operations of a company.

Business Plan

A document projecting a firm’s physical and financial performance into the future. Business plans can be short or long range. Long-range plans are “strategic” and tend to be more verbal than financial. Shorter-term plans are described as “operational,” and detail the more routine running of the business.

Dividend Policy

A company's strategy or guidelines dictating how often dividends will be paid to shareholders, the form of the dividend, and how much will be distributed.