Attempts: Average: I2 8. Problems and Applications 8 Which of the following is a

Question

Attempts: Average: I2 8. Problems and Applications 8 Which of the following is an example of inside information? O An individual carefully studies the information he gathered from various news reports before deciding which stocks to purchase. A lawyer representing the CEO of a company overhears a confidential meeting in which it's disclosed that the CEO is going to be indicted for accounting fraud. O Barron's News Letter analyzes the prospects for legislation restricting oil and gas fracking. O The New York Times reports the issues some of the services by Apple Inc. are facing. very high rates of return Those who trade stocks based on inside information usually earn sis because the efficient markets hypothesis argues that stock prices always nse True or False: This fact does not violate the efficient markets hypothes True

Explanation / Answer

Inside Information :

Inside information can be related to the situation,plans and conditions where the data or statistics would create a financial impact when we buy and sell the shares.

Answer : an individual carefully studies the information he gathered from various news reports before deciding which share to purchase.

Answer : False

Justification :

If an individual tends to make use of inside information to purchase shares, the one would be held guilty of inside trading.

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