Which of the Following Statements About "Inside Information" Is FALSE

question 269

Multiple Choice

Which of the following statements about "inside information" is FALSE?

• A) It is information that is not available to the general public.
• B) It is illegal to knowingly use inside information when trading stocks.
• C) Profits can be made using inside information.
• D) The government never imposes fines or other penalties for abuse of inside information.

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Definitions:

Risky Actions

Behaviors or decisions that involve a significant degree of uncertainty and potential for negative outcomes.

Conflicting Incentives

This term refers to situations where parties involved have different motivations or incentives, leading to potential conflicts in decision-making.

Contract Terms

The specific conditions, provisions, and obligations agreed upon by parties in a contract.

Commercial Lending

The provision of loans to businesses by financial institutions, encompassing a range of loan types such as term loans, lines of credit, and equipment financing.