Which one of the following statements related to insider trading is correct?
A)Licensed stockbrokers are exempt from insider trading laws.
B)Individuals, such as Martha Stewart, who have been convicted of crimes, can be barred from being executive officers of publicly traded companies.
C)Because of the increased speed of information flows and the improved efficiency of the markets, insider trading laws were abolished in 2006.
D)Martha Stewart was convicted of insider trading and subjected both to a fine and a jail sentence.
E)An investor who receives advice from an investment advisor is automatically charged with insider trading when the advisor bases his recommendations on private information.

Question

Quizplus · Accepted Answer

Martha Stewart was involved in a well-publicized legal case related to insider trading. Although she was not convicted of insider trading itself, she was convicted of obstruction of justice, making false statements, and conspiracy related to an insider trading investigation. This case highlighted the consequences of being involved in activities related to insider trading, including the potential for being barred from serving as an executive officer or director of a publicly traded company.

Which One of the Following Statements Related to Insider Trading