Asked by
Malek Alhassan
on Nov 30, 2024
Verified
All of the following are types of illegal insider trading EXCEPT:
A) officers or directors who pass valuable information to someone who trades in the company's stock and then is repaid in some way.
B) an officer or director who makes a direct profit on an investment just after the public announcement of a major development related to that investment.
C) a director who buys through overseas financial institutions stocks and options in his own company prior to a public announcement of information which greatly enhances the value of the stock.
D) an officer of a company who, for a fee, related to investment bankers information about companies her company is planning to target for takeover.
Illegal Insider Trading
The unethical and illegal practice of trading securities based on material, non-public information.
Public Announcement
An official communication made to the general public through various media channels, often containing information of significance or relevance to a wide audience.
- Understand the implications of insider trading laws and the classification of insiders.
Verified Answer
CG
Learning Objectives
- Understand the implications of insider trading laws and the classification of insiders.