Avery, an executive assistant at the Newport Group, photocopied documents detailing a major merger that will be finalized in two weeks. Avery is thrilled to read about the merger, plans to call her broker immediately and buy stock in the company, and suggests that you should also act on her stock tip. Since you are not employed at her firm your purchase is legal.

Question

Quizplus · Accepted Answer

Insider trading involves buying or selling a stock on the basis of company information not available to the investing public. In this case the secretary would be participating in insider trading and you would be as well.

Avery, an Executive Assistant at the Newport Group, Photocopied Documents