Question

Moore is the president of a large corporation. He tells his friend Henshaw that the corporation has developed a new product, unknown to the public that will greatly increase the corporation's stock price. Henshaw immediately buys large amounts of stock in the corporation. This situation is an example of:

Answer 1

Answer: Insider trading

Step-by-step explanation:

Insider trading is one of the type of trading process in which the organizational stocks are purchasing or also selling on the basis of the material and the other data related to the firm or companies.

The trading is done publicly and this type of trading is illegal as it provide various types of confidential or insider information or data about the specific company in the market.

According to the given question, Moore is one of the president of an large organization and he wants to develop a unique product so that the company's stock price are get increased.

Therefore, the given situation is refers to the example of the insider trading process.