Hannah owned 12 percent of the shares of Floating Walls Inc., a furniture manufacturing company, and had significant influence on the members of the board. She was informed about all the important decisions of the company and was also called for various board meetings. On obtaining information-from one of the senior board members-about the fall in the prices of the company's share, Hannah immediately sold 5 percent of her shares in the market. It can be said that Hannah indulged in _____.

Question

Quizplus · Accepted Answer

Hannah indulged in insider trading by using non-public information to make a profit. As a board member with significant influence, she had access to important sensitive information that was not available to the general public, and she used this information to sell her shares before the public was aware of the decreasing share prices.

Hannah Owned 12 Percent of the Shares of Floating Walls