Insider Trading Is Both Unfair and Illegal

question 229

Multiple Choice

Insider trading is both unfair and illegal.It occurs when officers,directors,major stockholders,or others trade securities while

• A)intoxicated.
• B)in prison.
• C)in possession of illegal drugs.
• D)in possession of "material" nonpublic security information.
• E)having relatives working at the firm whose stock they are trading.

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Definitions:

Drug Sales

The commercial activity of selling medications, including both prescription drugs and over-the-counter products.

Deadweight Loss

The loss of economic efficiency when the equilibrium outcome is not achievable or not achieved.

Competitive Level

The point where an entity can effectively compete in the market, usually by matching or surpassing competitors' offerings.

Consumer Surplus

The gap between the total price consumers are ready and able to pay for a good or service versus what they actually spend.