Question

An investor who holds non-convertible bonds or preferred stock of the company is not an insider - he or she is not in a position to get non-public information. True or False?

1) True
2) False

Answer 1

No, the statement is False. Non-convertible bondholders or preferred stockholders are not considered insiders and do not have access to non-public information.

Step-by-step explanation:

No, the statement is False. An investor who holds non-convertible bonds or preferred stock of a company is not an insider in terms of having access to non-public information. Insiders typically include managers, directors, and major shareholders who have access to confidential information about the company. Non-convertible bonds and preferred stock are generally available to the public and do not give the holder access to non-public information.