Managers who act upon secret company information for personal gain, such as by trading stocks based on the knowledge of future initiatives, are guilty of Blank______.Multiple choice question.insider tradingwire fraudpredatory lendingwhistle-blowing
Question
Managers who act upon secret company information for personal gain, such as by trading stocks based on the knowledge of future initiatives, are guilty of Blank______.Multiple choice question.insider tradingwire fraudpredatory lendingwhistle-blowing
Solution
The correct answer is "insider trading". This term refers to the practice of trading stocks or other securities based on non-public, material information about the company. It is considered illegal because it is unfair to other investors who do not have access to this information.
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