Jorge is the vice president of Hexagon Inc. He learned at a senior staff meeting that the company's research staff has made an amazing discovery that is almost certain to result in several profitable new patents. He is confident that once this information becomes public, the price of Hexagon's stock will soar. He calls his broker and places an immediate order to buy 5,000 additional shares of stock in the company. Jorge's actions are:

Question

Quizplus · Accepted Answer

Jorge's actions are an example of illegal insider trading because he is acting on inside information that is not available to the public. As a vice president of the company, he has access to confidential information that he is using to make a personal gain in the stock market, which is illegal. Trading on inside information is a violation of securities laws and can result in fines and even criminal charges.

Jorge Is the Vice President of Hexagon Inc