Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were:
A) acting really smart.
B) engaging in insider trading.
C) stealing from IBM.
D) acting fairly.

Question

Quizplus · Accepted Answer

The individuals who received the information and traded on it were engaging in insider trading, which is illegal. They used information that was not publicly available to make a profit, which gives them an unfair advantage over other investors.

Before It Was Publicly Known That IBM Was Going to Take