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Jodie's Brother Is a Director at Trip Corporation

Question 36

Multiple Choice

Jodie's brother is a director at Trip Corporation. He calls her and says that Trip's earnings, not yet announced, will be up by 75 percent and that Jodie should buy Trip's common stock. Under these circumstances, Jodie:


A) can trade because she obtained public information from an insider.
B) cannot trade because she is not an insider.
C) can trade because the information will eventually be made public.
D) cannot trade because she is the relative of an insider.

Correct Answer:

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