When Considering Insider Trading, the "Insiders" of a Reporting Issuer

question 34

Multiple Choice

When considering insider trading, the "insiders" of a reporting issuer are

• A) its directors and senior officers.
• B) the directors and senior officers of its parent or subsidiary firms.
• C) its shareholders with more than 10 percent of outstanding voting rights.
• D) the reporting issuer itself (the company is its own insider).
• E) All of these are reporting issuers.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Total Revenue Product

The overall income generated by a firm from selling its output, factoring in the quantity of output sold and the price per unit.

Marginal Physical Product

The additional output that results from using one more unit of a factor of production, keeping other factors constant.

Marginal Revenue Product

Marginal Revenue Product measures the increase in revenue realized from employing one additional unit of input, such as labor or capital, holding all other inputs constant.