Which One of the Following Statements Related to Insider Trading

question 41

Multiple Choice

Which one of the following statements related to insider trading is correct?

• A)Licensed stockbrokers are exempt from insider trading laws.
• B)Individuals, such as Martha Stewart, who have been convicted of crimes, can be barred from being executive officers of publicly traded companies.
• C)Because of the increased speed of information flows and the improved efficiency of the markets, insider trading laws were abolished in 2006.
• D)Martha Stewart was convicted of insider trading and subjected both to a fine and a jail sentence.
• E)An investor who receives advice from an investment advisor is automatically charged with insider trading when the advisor bases his recommendations on private information.

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Definitions:

Ireland

An island in the North Atlantic, divided into the Republic of Ireland, an independent nation, and Northern Ireland, part of the United Kingdom.

Puritans

A group of English Protestants in the 16th and 17th centuries who sought to purify the Church of England of Roman Catholic practices, maintaining that the Church of England was only partially reformed.

Anglicans

Members of the Church of England or of any churches in communion with it, which combine Catholic and Protestant traditions.

Petition of Right

A constitutional document submitted to Charles I by the English Parliament in 1628 to limit the king's authority and assert the rights of subjects, including freedom from arbitrary arrest and taxation without Parliament's consent.