Asked by Fahim Sultanzada on Jun 26, 2024

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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.
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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.