Which One of the Following Is Most Apt to Be

question 99

Multiple Choice

Which one of the following is most apt to be considered insider trading?

• A) Stu overhears Martha say that she is being promoted to sales manager.
• B) Cathy compiles the financial statements and knows that net income for the latest quarter is significantly below analyst's forecasts.
• C) Wes is an outside auditor and has found what he believes are significant accounting irregularities in a company's financial reports.
• D) Theresa buys stock in ABC after she overhears a conversation between the firm's president and his wife concerning a proposed acquisition.
• E) Lester buys shares of stock in his firm through his company retirement plan on a regular monthly basis.

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Definitions:

Nonlawyer Assistants

Individuals without a legal degree who assist lawyers in their work, performing tasks like research, paperwork, and client communication under the supervision of a licensed attorney.

Lawyers' Duty

A lawyer's duty includes obligations to represent clients competently, act within the bounds of the law, maintain client confidentiality, and prioritize the client's best interests.

Ethical Rule

A principle that guides professional conduct by defining acceptable and unacceptable behavior.

Adequate Supervision

Sufficient oversight and direction provided by someone in a position of authority to ensure safety and compliance with rules or standards.