Jorge is a senior vice president for his company. He learned at a senior staff meeting today that the company’s research staff has made an amazing discovery that is almost certain to result in several profitable new patents. He is confident that once this information becomes public knowledge, the price of his company’s stock will soar. He calls his broker and places an immediate order to buy 5,000 additional shares of stock in the company. Jorge’s actions are
a. an example of illegal insider trading.
b. an example of trading on the margin, which is legal.
c. an example of preemptive buying, which is technically legal but considered highly unethical by many securities dealers.
d. perfectly legal, because he didn’t obtain the information illegally.
Additional Requirements
Level of Detail: Only answer needed