PRC-3 · Chapter 6 · Question 7 of 68
An executive learns in a closed-door meeting that his company will successfully acquire a major rival next week. He immediately buys thousands of shares in his own company before the news goes public. What illegal act has he committed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) 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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