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:

Government Size

Refers to the scope, scale, and range of activities and services provided by a government, including its regulatory and fiscal operations.

Tax Dollar

Money collected by the government from individuals and businesses through various forms of taxation, used to fund public services and projects.

Private Economy

Part of the economy that is owned and operated by private individuals and companies, rather than the government.

Productive Exchanges

Transactions that result in mutual benefit to the parties involved, typically enhancing overall economic productivity.