Renee and her firm, Fraser Communications, were contacted by Google for marketing and public relations support during its acquisition of LinkedIn. The very next day after agreeing to take on Google as a client, Renee bought 10,000 shares of LinkedIn stock. She sold all of her shares after the stock's price jumped 55 percent after the public announcement of the acquisition. She was caught and fined by the government. Her actions are an example of ____________.

Question

Quizplus · Accepted Answer

Renee's actions are an example of insider trading because she used non-public, material information (Google's acquisition of LinkedIn) to make a profit on the stock market. Insider trading is illegal and involves trading a public company's stock or other securities based on material, non-public information about the company.

Renee and Her Firm, Fraser Communications, Were Contacted by Google