Question

Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought the stock in the target corporation. the takeover occurred and the friend made a substantial profit from buying and selling the stock. the friend told sharon about his stock dealings, and gave her a pearl necklace because she "made it all possible". the necklace was worth $10,000, but she already owned more jewelry than she desired.

Answer 1

This is an example of insider trading, which is using private company data or information to make improper gains.