19. \"Selling short is- a. Selling borrowed securities b. Selling securities for

Question

19. "Selling short is- a. Selling borrowed securities b. Selling securities for less than one paid for them c Selling securities with a short closing deadline d. Seling only a small portion of one's portfolico 20. "Outsider trading is a. Trading in another company's stock by a person not employed by that company on the basis material, non-public information b. Trading in another company's stock without that company's permission c Trading in stock of a company after it has agreed to merge with another company d. Trading in stock of a company without inside information 21. To"misappropriate" information means- a. To read company mail without permission b. To send company information to the wrong address c. To trade on company information obtained for another purpose d. To alter company information to make it misleading 22. Which of the following is NOT a principal public policy reason for regulating insider trading? a. To enhance market fairness b. To preserve market integrity c. To protect property right d. To control executive compensation 23. The duty to "abstain or disclose" Was applied by the Supreme Court in upholding O'Hagan's conviction for securities fraud b. Applies to any person in possession of material, nonpublic information c. Was applied by the Supreme Court in upholding Chiarella's conviction for securities fraud d. Ensures "parity of information between buyers and sellers of securities 24. The Dirks case stands for the proposition that a. Only a "tipper," but not a "tippee,"can be held to violate Rule 10b-5 b. Absent a breach of duty, trading on an insider's tip does not violate 10b-5 c. An insider may disclose corporate information to outsiders as long as the insider does not derive a personal financial benefit d. Unauthorized disclosure of ntivoratt corporate information is never unlawful

Explanation / Answer

19.

Selling short is a trding trategy in which investor sell the securities that he currently does not holds or he borrowed the securities. in short selling investor earn profit when stock price decline in future.

Option (A) is correct answer.

20.

Outsider trading is defined as trading in another company's stock by a person not employed by that company on the basis material and non public infomration.

Option (A) is correct answer.

21.

To misappropriate information mean to trade on comapny information obtained for another purpose.

Option (C) is correct answer.

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