Insider trading refers to the buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock. Insider trading can be legal or illegal depending on when the insider makes the trade; it is illegal when the material information is still non-public, and this definition does not limit the action to either buying or selling nor does it specify a particular time frame.

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Insider Trading Is

Question 362

Multiple Choice

Insider trading is:

A) stock trades inside a thirty-day time period by corporate insiders
B) only the buying of stock by persons who have access to information, not yet revealed to the public, that affects the value of the stock
C) only the selling of stock by persons who have access to information, not yet revealed to the public, that affects the value of the stock
D) stock trades inside a one-year time period by directors
E) none of the other choices

Correct Answer: