Ted Is an Engineer for True Tech and Has Just

question 73

Multiple Choice

Ted is an engineer for True Tech and has just discovered a revolutionary method for strengthening metals.He knows this knowledge will add value to True Tech's stock.Ted happens to mention this discovery and its value to his neighbor,Fred.Fred can be charged with insider trading if he:

• A)continues to hold the True Tech shares of stock he already owns.
• B)shares this information with another neighbor.
• C)sells his shares in True Tech immediately after the news of the discovery is announced.
• D)provides this information to a friend who will trade the stock and split the profits with him.
• E)buys shares in True Tech immediately after the news is announced and then shortly thereafter sells the shares at a profit.

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Definitions:

Indorses

Signs or writes one's name on the back of (a document) to make it transferable or to add details, also referred to as endorsing.

Note Payable

A written promise to pay a specified amount of money, usually with interest, at a future time.

Good Faith

A principle that implies honesty and sincerity of intention in the fulfillment of one's duties or negotiation.

Promissory Note

A financial instrument indicating a written promise by one party to pay a definite sum of money to another party under agreed terms.