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Insider Trading

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

A retail employee buys stock in their employer's company through a publicly offered employee stock purchase plan.

a)

Legal

b)

Illegal

2.

An employee in the finance
department overhears a conversation about their company failing to meet financial targets. They advise their
family to sell their shares before this information is released.

a)

Legal

b)

Illegal

3.

A person attends a public trade show where a new tech gadget is unveiled. Impressed by the product, they purchase stock in the manufacturing company.

a)

Legal

b)

Illegal

4.

An employee in a biotech firm
buys stocks in their own company after seeing a positive trend in
the industry, with no specific
inside information.


a)

Legal

b)

Illegal

5.

An intern at an energy company accidentally discovers plans for a large-scale layoff. They secretly inform a relative who then sells a significant amount of stock.


a)

Legal

b)

Illegal

6.

An investor reads a publicly
available analyst report predicting growth in the renewable energy sector. They decide to invest in several renewable energy companies.


a)

Legal

b)

Illegal

7.

After a company's quarterly earnings report is released to the public, showing better than expected results, a group of college friends decide to buy shares of the company.


a)

Legal

b)

Illegal

8.

A software developer at a tech firm is aware of a major security flaw in a
new product that is not yet public. They sell their stock expecting a decrease in
the company's stock value once the
flaw is revealed.


a)

Legal

b)

Illegal

9.

A marketing manager at a beverage company is aware of a soon-to-be-released, highly anticipated advertising campaign.
They purchase additional stock before the campaign launches.



a)

Legal

b)

Illegal

10.

An investor watches a news segment where an expert discusses the potential growth of the electric vehicle market.
They decide to buy stock in several car companies that are known to be developing electric vehicles.


a)

Legal

b)

Illegal