Which One of the Following Statements Is Correct

question 4

Multiple Choice

Which one of the following statements is correct?

• A) Company insiders are not permitted to trade their employer's securities.
• B) Only tippers can be accused of illegal insider trading.
• C) Tippees are permitted to trade securities based on information they know is private.
• D) Trading on private information which you just happen to overhear is legal.
• E) Any trading based on information known to be private is illegal.

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Definitions:

Total Variable Cost

The aggregate of all variable costs that are incurred for a particular level of output or production.

Total Annual Fixed Costs

The sum of all business expenses that are constant and do not change with the level of production within the year.

Profit Maximising Model

A theoretical framework or strategy aimed at increasing a firm’s profits to the highest possible level.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.