Karen learns from a coworker at her pharmaceutical company that one of the firm's most profitable drugs will be pulled off the market.Before the news becomes public,she sells all of her stock in the company.This action is best characterized as _____.

Question

Quizplus · Accepted Answer

Insider trading refers to the buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock. Karen's actions fit this definition, as she sold her stock based on confidential information about the drug being pulled from the market.

Karen Learns from a Coworker at Her Pharmaceutical Company That