What is insider trading? Why would an investor engage in it?
What will be an ideal response?
Answer: Insider trading is using confidential information to gain from the purchase or sale of stocks. Confidential information is information that is not available to the general public but that is available to a few people because of their position within a company. For example, investors with inside information may sell a stock at a high price just before a piece of negative information becomes public and the price plummets, thus preventing a big loss. Similarly, an investor with inside information may buy stock at a low price just before a piece of favorable information becomes public and the price of the stock increases.
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In applying the lower of cost or market method to inventory valuation, market is defined as the current selling price.
Answer the following statement true (T) or false (F)
Which of the following assets are subject to either amortization, depreciation, or cost recovery? An automobile held for personal use.
Answer the following statements true (T) or false (F)
1. The AFL and CIO merged in 1955 largely to decrease competition between rival unions and increase their power in dealing with management. 2. Since the 1960s, union membership in the public sector has seen a dramatic decline. 3. While racism and discrimination were significant problems in the larger social fabric of the U.S. during the 1960s, labor unions were instrumental in providing protection and relief from discrimination. 4. Labor-management relations in the 1980s was characterized by concession bargaining, job loss, and the decline of manufacturing in the U.S.
The face amount for a particular life insurance policy is equal to
A) the amount you would receive if you canceled the insurance policy. B) the sum of all past premiums. C) the sum of all past premiums minus dividends paid. D) the amount of death protection without accidental death benefits or reduction for policy loans.