• Question

      You are working in accounting department of a company and during preparation of the annual accounts you get to know that company is making huge profit this year. Expecting a hike in the share price of the company you buy shares of your company. You are involved in?   

      A Future Trading Correct Answer Incorrect Answer
      B Speculative Trading Correct Answer Incorrect Answer
      C Insider Trading Correct Answer Incorrect Answer
      D Outsider Trading Correct Answer Incorrect Answer
      E Neutral Trading Correct Answer Incorrect Answer

      Solution

      Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information are illegal.

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