ACCA LW · Chapter 12 · Question 5 of 11
Under Part V of the Criminal Justice Act 1993, which of the following best describes 'inside information'?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Information that relates to particular securities or issuers, is specific or precise, has not been made public, and would be likely to have a significant effect on price if it were made public
Explanation
Inside information must relate to particular securities or a particular issuer (not securities generally), be specific or precise, not have been made public, and be likely to have a significant effect on price if made public. Information that has already been published is not inside information. A person may be an insider through being a director, employee or shareholder of an issuer, through access by virtue of employment, office or profession, or by obtaining the information directly or indirectly from such a person.
More Corporate governance and fraudulent behaviour MCQs
- Q7Money laundering is commonly described as involving three stages. Which stage involves passing criminal proceeds through a series of…
- Q8An accountant working in the regulated sector tells a client that she has made a report to the authorities about the client's suspicious…
- Q9Under s7 Bribery Act 2010, a commercial organisation commits an offence if a person associated with it bribes another person intending to…
- Q10Which of the following correctly describes the offences under ss1 and 2 Bribery Act 2010?
- Q11Which of the following is an offence under the principal money laundering provisions of the Proceeds of Crime Act 2002?