PRC-3 · Chapter 6 · Question 15 of 68
An employee overhears confidential board discussions about an unannounced merger and quickly buys shares in the target company to make a profit. What is this illegal practice called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Insider trading
Explanation
Insider trading is the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential, non-public information.
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