Penny and Theodore comprise a scheme whereby Penny will send information to Theodore in regards to the moves her telecommunications company is making when she learns about it in their company's internal strategy meeting so he can make a better stock trade. This is known as ________.
A) insider trading
B) cramming
C) embezzlement
D) false token
E) check kiting

Question

Quizplus · Accepted Answer

Insider trading involves trading a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In this scenario, Penny is providing Theodore with nonpublic information about her telecommunications company to help him make informed stock trades, which is a classic example of insider trading.

Penny and Theodore Comprise a Scheme Whereby Penny Will Send