All of the following are types of illegal insider trading EXCEPT:
A) officers or directors who pass valuable information to someone who trades in the company's stock and then is repaid in some way.
B) an officer or director who makes a direct profit on an investment just after the public announcement of a major development related to that investment.
C) a director who buys through overseas financial institutions stocks and options in his own company prior to a public announcement of information which greatly enhances the value of the stock.
D) an officer of a company who, for a fee, related to investment bankers information about companies her company is planning to target for takeover.

Question

Quizplus · Accepted Answer

Insider trading laws typically target the misuse of confidential information for profit before it's made public. Choice B describes a scenario where an officer or director profits from a public announcement, which is legal if they didn't act on inside information before it was disclosed to the public.

All of the Following Are Types of Illegal Insider Trading