When the price of a company's stock increases or decreases significantly in advance of a public announcement of an event affecting the company, there are suspicions that __________ may have occurred.
A)bid rigging
B)default inversion
C)insider trading
D)an increase in margin requirements

Question

When the price of a company's stock increases or decreases significantly in advance of a public announcement of an event affecting the company, there are suspicions  that __________ may have occurred.
A)bid rigging
B)default inversion
C)insider trading
D)an increase in margin requirements

Quizplus · Accepted Answer

Insider trading is suspected when a company's stock price moves significantly before a public announcement, as it suggests that individuals with privileged information may have acted on it before it became known to the public.

When the Price of a Company's Stock Increases or Decreases