PRC-3 · Chapter 6 · Question 44 of 68
A senior manager overhears confidential board discussions regarding an upcoming lucrative merger. He immediately calls his broker to buy thousands of shares in the company before the news becomes public. What is this crime?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Insider trading
Explanation
Insider trading is the illegal practice of using confidential, non-public corporate information to execute trades on the stock market for personal gain.
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