SIE practice questionmediumInsider Trading
Which of the following would be considered illegal insider trading?
- ATrading on rumor posted on social media
- BSelling stock after a public earnings announcement
- CA corporate officer buys shares based on material, nonpublic information✓ Correct answer
- DBrokers calling clients about public news
Explanation
Why C — A corporate officer buys shares based on material, nonpublic information
Trading on material, nonpublic information is insider trading. Trading on public news or rumors is not illegal (though risky); disseminating public info is permitted.
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