Question

Which of the following is an example of inside information?

a) Barron's News Letter analyzes the prospects for legislation restricting oil and gas fracking.
b) A board member of a company knows that a merger is going to be announced in a few days and that the stock price of the company is likely to rise as a result .
c) An individual carefully studies the information they gathered from various news reports before deciding which stocks to purchase.
d) The Financial Times reports on the CEO of an insurance company being investigated for civil fraud charges

Answer 1

Option b) a board member of a company knowing that a merger is going to be announced is an example of inside information.

Step-by-step explanation:

Inside information refers to information that is not available to the public and can give an unfair advantage to those who possess it. Among the options provided, option b) a board member of a company knowing that a merger is going to be announced is the example of inside information. This board member has access to non-public information about the merger, which can potentially influence the stock price of the company.