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What Type of Securities Fraud Occurs When an Employee Falsifies

Question 26

Multiple Choice

What type of securities fraud occurs when an employee falsifies documents to make it appear as though the company had granted options on certain dates,but the dates are selected after the fact by looking backward for dates on which the stock price was low,thereby falsely inflating the profits of the company?


A) Insider trading
B) Pretexting
C) Defalcation
D) Stock-option backdating
E) A Ponzi scheme

Correct Answer:

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