Question

Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co-workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit.

These people were:

A. really smart.
B. insider trading.
C. stealing from IBM.
D. acting fairly.

Answer 1

The correct answer is letter "B": insider trading.

Step-by-step explanation:

While often associated with illegal activity, insider trading encompasses both illegal and legal trading of securities and is monitored by the Securities and Exchange Commission (SEC). Illegal insider trading occurs when a person uses material, non-public information to decide between buying or selling a security in exchange for a fee.