Which of the Following Is Not an "Insider" for Purposes

question 12

Multiple Choice

Which of the following is not an "insider" for purposes of the insider trading rules?

• A) An internal auditor
• B) An independent member of the Board of Directors who does not own any company stock
• C) A shareholder who owns 7% of a company's stock and her husband owns 4% of the company's stock
• D) A investors who owns 20% of a company's general obligation bonds that are trading at a price roughly equal to their market value

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Definitions:

Liquidity

A measure of how easily assets can be converted into cash without affecting their market price.

Profitability

An indicator of how well a company is able to produce profit through its business activities.

Liquidity

A measure of how easily assets can be converted into cash or cash equivalents without significantly altering their value, essential for meeting short-term obligations.

Asset Management

A methodical approach to the creation, operation, upkeep, and disposition of assets that ensures cost efficiency.