Question

Jennifer received a tip from a close friend who is an executive manager of a pubLiCly traded company called MegaRed Inc. The manager received some inside information about how to trade MegaRed stock to get a huge profit. He shared this information with Jennifer. This scenario is an example ofn what ?

1) Insider trading
2) Market manipulation
3) Legal trading
4) Ethical trading

Answer 1

The scenario described is an example of insider trading.

Step-by-step explanation:

The scenario described in the question is an example of insider trading. Insider trading refers to the illegal practice of trading stocks using confidential, non-public information that is not available to the general public. In this case, Jennifer received privileged information from her friend, the executive manager of MegaRed Inc., which gives her an unfair advantage in trading the company's stock.