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Law Incorporation [45]
4 years ago
13

A senior level manager in a corporation learns that the Chief Financial Officer is going to be indicted the following day on cha

rges of accounting fraud. He quickly sells his shares of stock in the​ corporation, fearing that the stock will fall after news of the indictment. This is an example of​ _______.
Social Studies
1 answer:
mario62 [17]4 years ago
7 0

Answer:

Insider Trading

Explanation:

Based on the information gathered from this situation it can be said that what the senior level manager did by selling his stock is an example of Insider Trading. This term refers to trading on a stock exchange to benefit from a movement in the stocks price that will occur because of confidential information that you have acquired and is not public knowledge. This act is completely illegal, and can lead to jail time.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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