Lexy,a Salesperson for My-T-Fine Corporation,learns That My-T-Fine Will In-Crease the Dividend

question 48

Multiple Choice

Lexy,a salesperson for My-T-Fine Corporation,learns that My-T-Fine will in-crease the dividend it pays to shareholders.Lexy buys 10,000 shares of My-T-Fine stock.When the price increases,Lexy sells the shares for a profit.Lexy would not be liable for insider trading if the information about the dividend was

• A)material when she sold the stock.
• B)public after she bought the stock.
• C)public before she bought the stock.
• D)speculative when she bought the stock.

---

Definitions:

Progress Billing

A billing method where payments are requested from customers based on the completion percentage of a project or contract.

Long-term Projects

Projects with a duration that extends beyond one year, typically involving large-scale and complex activities.

Direct Write-off Method

An accounting method where uncollectable debts are charged directly to expense as they are identified.

GAAP

Generally Accepted Accounting Principles; a set of accounting standards and procedures used in the U.S. to govern financial reporting.