Asked by Fahim Sultanzada on Jun 26, 2024
Verified
When a company employee or executive uses material inside information to make a profit,he or she is engaging in:
A) Embezzlement
B) Insider trading
C) Grafting
D) A Ponzi scheme
E) Solicitation of bribery
Insider Trading
The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.
Material Information
Any information that could influence an investor's decision to buy or sell securities, including details about a company's financial status, operations, and any legal issues.
- Detect and acknowledge the juridical and ethical repercussions of engaging in insider trading.
Verified Answer
CK
Carly KaminskiJun 30, 2024
Final Answer :
B
Explanation :
When a company employee or executive uses material inside information to make a profit,he or she is engaging in insider trading.Insider trading is illegal because it gives the violator an important advantage over the general public and shareholders.
Learning Objectives
- Detect and acknowledge the juridical and ethical repercussions of engaging in insider trading.
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