When the Price of a Company's Stock Increases or Decreases

question 55

Multiple Choice

When the price of a company's stock increases or decreases significantly in advance of a public announcement of an event affecting the company, there are suspicions  that __________ may have occurred.

• A)bid rigging
• B)default inversion
• C)insider trading
• D)an increase in margin requirements

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Definitions:

Judicial Review

The power of courts to assess the constitutionality of laws and actions of the executive and legislative branches.

Constitutionality

The quality of being in accordance with the Constitution or governed by its principles.

Interstate Commerce

Trade, traffic, or transportation involving the passage of goods, services, money, or people across state lines within the United States.

Economic Development

Activities and policies aimed at improving the economic well-being and quality of life of a community or country, including job creation, infrastructure improvements, and business support.