Ted is an engineer for True Tech and has just discovered a revolutionary method for strengthening metals.He knows this knowledge will add value to True Tech's stock.Ted happens to mention this discovery and its value to his neighbor,Fred.Fred can be charged with insider trading if he:
A)continues to hold the True Tech shares of stock he already owns.
B)shares this information with another neighbor.
C)sells his shares in True Tech immediately after the news of the discovery is announced.
D)provides this information to a friend who will trade the stock and split the profits with him.
E)buys shares in True Tech immediately after the news is announced and then shortly thereafter sells the shares at a profit.

Question

Quizplus · Accepted Answer

By sharing the insider information with a friend and splitting the profits, Fred is engaging in insider trading. It is illegal for anyone to profit from insider information that has not yet been made public.

Ted Is an Engineer for True Tech and Has Just