SSC Economics Sample Paper NCERT Sample Paper-6

  • question_answer
    Which of the following best describes 'insider trading'?

    A)  Share trading by promoters of a company.

    B)  Domestic selling of goods by SEZs established for export promotion.

    C)  Secret and clandestine trade by smugglers.

    D)  Share trading by people who have confidential information about the company.

    Correct Answer: D

    Solution :

    [d] Share trading by people who have confidential information about the company. Insider trading is defined as a malpractice wherein trade of a company's securities is undertaken by people who by virtue of their work have access to the otherwise non-public information which can be crucial for making investment decisions.


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