Question

As the CEO of a pharmaceutical company, Simone learned that the government was about to block the import of one of the company's biggest-selling drugs. She decides to sell her shares of stock before the information is made public. Since she used confidential information to make her decision, she is guilty of _____

Answer 1

Answer: Insider trading.

Step-by-step explanation:

Simone is guilty of insider trading, because she made use of non-public information to trade her stock in the company.

Insider trading occurs when an individual who own some shares in a company sell those shares based on information received, that is not yet made known to the public.