The Following Stock Transactions Were Completed by the Executive Vice

question 88

Multiple Choice

The following stock transactions were completed by the executive vice president of Vinco, Inc., a publicly traded corporation: January 12, 2013 - EVP sells 100 shares @ $40 per share May 5, 2013 - EVP buys 100 shares @ $20 per share June 1, 2013 - EVP sells 100 shares @ $30 per share
Which of the following statements is correct?

• A) EVP has a short-swing profit of $200.
• B) EVP has a net loss of $100.
• C) EVP has a short-swing profit of $100.
• D) EVP has a short-swing profit of $300.

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Definitions:

Natural Monopolies

A market condition where due to high infrastructure costs or significant barriers to entry, a single company can supply a product or service more efficiently than multiple competing firms.

Government Regulation

The establishment of rules and laws by government bodies that are intended to control or govern conduct and practices within various sectors.

Price Discrimination

A pricing approach in which the same provider sells the same or nearly the same products or services for different prices in distinct markets or to various customers.