B. Corporate insiders—officers, directors, and employees—use material, non-publi

Question

B. Corporate insiders—officers, directors, and employees—use material, non-public information to buy and sell stock in their own companies.

Corporate insiders, get an accessibility of the information which not disclosed to the public as yet. When such information is used by these insiders to undertake the speculative trading activities in the securities market and accordingly buy or sell the securities, depending upon the impact of such information once it is released in public, then such a trading is termed as Illegal Insider Trading.

Explanation / Answer

1. Which is Illegal Insider Trading?

A. Corporate insiders—officers, directors, and employees—use material, public information to buy and sell stock in their own companies

B. Corporate insiders—officers, directors, and employees—use material, non-public information to buy and sell stock in their own companies

C. Corporate insiders giving material, non-public information about securities to another person

D. Corporate insiders giving material, non-public information about securities to another person and that person uses information to trade securities

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