Asked by Carlee Maree on Jun 10, 2024
Verified
Restrictions on trading involving insider information apply to:
I. Corporate officers and directors
II. Major stockholders
III. Relatives of corporate directors and officers
A) I only
B) I and II only
C) II and III only
D) I, II, and III
Insider Information
Privileged, non-public information about a corporation that could influence an investor's decision to buy or sell the stock.
- Attain a comprehension of the expenses, rules, and procedures involved in public market entries and the dealings of securities.
Verified Answer
BW
Brian WojcioJun 14, 2024
Final Answer :
D
Explanation :
Restrictions on trading involving insider information apply to all of the individuals listed in choices I, II, and III. This includes corporate officers and directors, major stockholders, and relatives of corporate directors and officers. It is illegal to buy or sell securities based on material nonpublic information, and individuals who do so can face severe legal penalties.
Learning Objectives
- Attain a comprehension of the expenses, rules, and procedures involved in public market entries and the dealings of securities.