Lex,a Salesperson for Macro Corporation,learns That Macro Will In?crease the Dividend

question 29

Multiple Choice

Lex,a salesperson for Macro Corporation,learns that Macro will in?crease the dividend it pays to shareholders.Lex buys 1,000 shares of Macro stock.When the price increases,Lex sells his shares for a profit.Lex would not be liable for insider trading if the information about the dividend was

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

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Definitions:

Peripheral Nervous System

The part of the nervous system that lies outside the central nervous system, comprising nerves and ganglia, responsible for transmitting sensory input and motor output between the CNS and the rest of the body.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for integrating sensory information and responding accordingly.

Sensory Division

Part of the peripheral nervous system that transmits sensory information to the central nervous system.

Brachial Plexus

A network of nerve fibers running from the spine, through the neck, and into the arm, responsible for sensory and motor functions.