Bill is public accountant auditing expo corporation. Based on information in exp

Question

Bill is public accountant auditing expo corporation. Based on information in expo's confidential records, bill recommends the purchase of expo stock to his brother.

a. Bill is involved in insider trading prohibited by the SEC.

b. Bill's brother has no direct connection to expo corporation and therefor his purchase of the stock is no prohibited by insider trading laws.

c. Bill is not an insider because he is not and officer or employee of expo corporation

d. If bill tolk a non-relative who purchases expo stock, no insider trading laws would be violated.

Explanation / Answer

Insider trading

Insider trading is an illegal practice on the stock exchange to one's own advantage through having access to confidential information. Based on information in expo's confidential records, bill recommends the purchase of expo stock to his brother.

So, Bill is involved in insider trading prohibited by the SEC.

Hence, Option (A) is correct answer.

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