SIE practice questioneasySEC Rules - Insider Definition
Which of the following is considered an 'insider' under SEC rules?
- AA bondholder of another company
- BA random customer of a brokerage
- CAn officer of the company✓ Correct answer
- DAn SEC examiner
Explanation
Why C — An officer of the company
Insiders include officers, directors, or owners of more than 10% of a company’s shares. Random customers, unrelated bondholders, or SEC examiners are not insiders.
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