Question

Which one of the following statements related to insider trading is correct?
A. Licensed stockbrokers are exempt from insider trading laws.
B. Individuals, such as Martha Stewart, who have been convicted of crimes, can be barred from being executive officers of publicly-traded companies.
C. Because of the increased speed of information flows and the improved efficiency of the markets, insider trading laws were abolished in 2006.
D. Martha Stewart was convicted of insider trading and subjected both to a fine and a jail sentence.
E. An investor who receives advice from an investment advisor is automatically charged with insider trading when the advisor bases his recommendations on private information.

Answer

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