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Select the Statement That Is Not a Criticism of Insider

Question 8

Multiple Choice

Select the statement that is not a criticism of insider trading.


A) The insider benefits inappropriately by buying or selling the stock at a price below or above what the market will demand when the inside information is made public.
B) An insider can benefit by trading on bad news as well as good, and this might be an incentive to work against the firm's best interests.
C) The insider's action sends the correct message to the market, reflecting the stock's true value, moving the market toward equilibrium.
D) The insider's information is often used without the firm's permission in a way that harms the stockholder's interests.

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