Brianna,a salesperson for Cosmetics Corporation,learns that Cosmetics will in-crease the dividend it pays to shareholders.Brianna buys 10,000 shares of Cosmetics stock.When the price increases,Brianna sells the shares for a profit.If Brianna is liable for insider trading,it is because she

Question

Brianna,a salesperson for Cosmetics Corporation,learns that Cosmetics will in-crease the dividend it pays to shareholders.Brianna buys 10,000 shares of Cosmetics stock.When the price increases,Brianna sells the shares for a profit.If Brianna is liable for insider trading,it is because she​

Quizplus · Accepted Answer

Brianna is liable for insider trading because she traded on information that was not available to the public. As an employee of Cosmetics Corporation, she had access to inside information about the company's plans to increase its dividend, and she used that information to make a profit by buying and selling the company's stock. This is illegal because it gives her an unfair advantage over other investors who do not have access to the same information.

Brianna,a Salesperson for Cosmetics Corporation,learns That Cosmetics Will In-Crease the Dividend