1. Insider Trading is generally defined as the buying or selling of a security, or participating in a transaction, by a party who has access to: a. Non-public information b. Genera... 1. Insider Trading is generally defined as the buying or selling of a security, or participating in a transaction, by a party who has access to: a. Non-public information b. General information c. Public information d. Historical information 2. David, a CEO, shares non-public information about his company’s financial struggles with his close friend, a journalist. The journalist promises not to publish the information but uses it to advise his own investment decisions. What has David committed? a. Insider trading b. Tipping c. Misuse of corporate information d. All of the above 3. As per the HBL Insider Trading Policy, the unpublished price-sensitive material information, does not include: a. Information regarding any joint ventures b. Ongoing media campaigns c. Pending or threatened litigation of potential significance d. Significant regulatory approvals 4. What constitutes inside information? a. Rumors and speculation b. Publicly available information c. Non-public, material information likely to affect stock price d. Historical financial data

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Understand the Problem

The questions are assessing knowledge about insider trading, its definitions, rules, and implications. They require an understanding of terms like 'non-public information' and related legal or ethical violations in a business context.

Answer

1. a, 2. d, 3. b, 4. c
  1. a. Non-public information 2. d. All of the above 3. b. Ongoing media campaigns 4. c. Non-public, material information likely to affect stock price
Answer for screen readers
  1. a. Non-public information 2. d. All of the above 3. b. Ongoing media campaigns 4. c. Non-public, material information likely to affect stock price

More Information

Insider trading involves non-public information that can significantly impact stock prices. Tipping refers to giving insider information, while all the options mentioned for David's actions are possible aspects of illegal conduct.

Tips

Confusing public and non-public information is common. Ensure to recognize the legal and illegal distinctions in sharing sensitive information.

Sources

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