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Charles, the President of an IT Company, Is Friends with Levi

Question 57

Multiple Choice

Charles, the president of an IT company, is friends with Levi, the CEO of Cyber Industries, a company that develops and manufactures computer hardware. Levi tells Charles that Cyber Industries is about to announce the creation of a revolutionary new computer processor that will quadruple processing capacity and cause Cyber Industries' sales and profits to skyrocket. Charles then purchases a large number of shares of Cyber Industries company stock before the news of the new computer processor is made public. In which illegal activity has Charles engaged?


A) A Ponzi scheme
B) Short selling
C) Issuing a call
D) Information abuse
E) Insider trading

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