Question

Restrictions on trading involving insider information apply to:

I. Corporate officers and directors
II. Major stockholders
III. Relatives of corporate directors and officers

A. I only
B. I and II only
C. II and III only
D. I, II, and II

Answer 1

Restrictions on trading with insider information apply to corporate officers and directors, major stockholders, and relatives of corporate directors and officers. The correct answer to the given question is D. I, II, and III.

Step-by-step explanation:

The question pertains to restrictions on trading with insider information. The restrictions apply to several groups of people who might have access to nonpublic, material information about the company. The groups include:

1. These individuals, due to their positions within the company, have access to confidential information that can impact the company's stock price. Shareholders who own a substantial amount of a company's shares might be privy to sensitive information, and hence are subject to insider trading laws. Close relationships to corporate insiders might give these individuals access to inside information. Therefore, they are also bound by insider trading regulations.

Therefore, the correct answer to the question is D. I, II, and III.