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.

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Definitions:

Historical Records

Documented events, transactions, or other data from the past, used for reference or analysis.

Demand Frequency

The rate at which goods or services are requested or required by customers.

Expected Demand

The anticipated quantity of a product or service that consumers will purchase in a future period under given conditions.

Monte Carlo Simulation

A computational algorithm that uses repeated random sampling to obtain numerical results, often used to assess risk and uncertainty in business and engineering models.