Which of the Following Practices Is Prohibited by the Insider

question 38

Multiple Choice

Which of the following practices is prohibited by the Insider Trading and Fraud Act of 1988?

• A) the use of nonpublic information to make profitable stock transactions
• B) selling of stock by officers of the company
• C) the granting of stock options to corporate executives in lieu of salaries
• D) private sales of stock between executives of the company

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Definitions:

Compliance Report

A compliance report is a document that outlines whether and how well a company or organization is adhering to set regulations, standards, or laws.

Chronology

The arrangement of events or dates in the order of their occurrence.

Topical Organization

Arrangement of material according to comparisons, importance, sequence, chronology, spatial orientation, geography, or category.

Chain Of Events

A sequence of occurrences or actions that are linked together, often leading to a particular result or outcome.