Federico works as a senior accountant at Martinez Inc.,a multinational technology giant.As a senior accountant at the company,Federico had exclusive access to some of the sensitive financial information of Martinez.It was later found that Federico had sold some of the sensitive information to a rival company for an undisclosed amount.Which of the following describes Federico's activity?

A) Underwriting
B) Insider trading
C) Limit order
D) Check clearing

Question

Tianxiang Zheng · Accepted Answer

Final Answer : B, Explanation :  Federico's activity is considered insider trading because he used exclusive, sensitive financial information not available to the public to benefit financially by selling it to a rival company. Insider trading involves trading a public company's stock or other securities based on material, non-public information about the company.

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