Which One of the Following Is Most Apt to Be

question 55

Multiple Choice

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

• A)Ann overhears Martha say she is being promoted to accounts payables manager and then she purchases shares in Martha's employer.
• B)Jennifer compiles the financial statements and knows that net income for the latest quarter is significantly below analyst's forecasts but continues to hold shares of her employer's stock.
• C)Kate is an outside auditor and has found what she believes are significant accounting irregularities in a company's financial reports but owns no shares in the firm.
• D)Les buys stock in Winter's Wear after he overhears a conversation between the firm's president and vice-president concerning a proposed acquisition.
• E)Jeff buys shares of stock in his employer's firm through the company retirement plan on a regular monthly basis.

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Definitions:

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, typically over one year.

Strategic Planning

A methodical approach to imagining a preferred future, then converting this vision into general aims or targets and outlining a series of actions to reach these goals.

Operational Planning

The process of planning specific day-to-day activities and resources needed to achieve tactical objectives and support strategic goals of an organization.

Downward Flow

The transmission of information, commands, and policies from higher levels of an organization to lower levels.