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:

Liquidity

The ease with which an asset or security can be converted into cash without affecting its market price.

Long-term Maturities

Refers to debt securities or loans with repayment periods typically exceeding one year, often associated with bonds or long-term loans.

Money Market

is a segment of the financial market where short-term financial instruments and securities are traded, offering liquidity and lower risk.

Lockbox Service

A banking service provided to companies for the reception of payment from customers, utilizing a special post office box to speed up the collection and processing of check payments.