Diane is the CEO of a U.S.-based pharmaceutical firm. Over the years, she has been purchasing significant amounts of stock in the company. The rejection of the company's new drug, by the FDA, resulted in a huge drop in the company's stock value. Diane knew of the rejection before it was made public and sold her stock. Diane is guilty of ________.

Question

Quizplus · Accepted Answer

Diane is guilty of insider trading as she used non-public information to make her stock transaction, which is illegal according to SEC regulations. False accounting refers to manipulating financial statements. Black marketeering is selling goods or services illegally outside of official channels. Influence peddling refers to using one's position of power to gain favors or benefits.

Diane Is the CEO of a U