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:

Market Equilibrium

A state where the supply of goods matches demand, resulting in stable prices.

Market Equilibrium

Market Equilibrium is a state in which market supply equals market demand, meaning that goods supplied at a certain price are exactly matched by the goods demanded at that price.

Excess Demand

A market situation where the quantity demanded of a product exceeds the quantity supplied at a given price, leading to shortages.

Excess Supply

The situation where the quantity of a good or service that is available exceeds the quantity demanded by consumers at the current price.