About 10 years ago, there were several bank mergers. shortly after big bucks bank bid on the bank of plenty, a story hit the local newspapers about the investigation into the purchase of several thousand shares of stock of the bank of plenty by three of its top executives, just prior to the announcement that big bucks bank planned to buy bank of plenty. upon close examination by the sec (securities and exchange commission) it was determined that the stock purchases were an illegal maneuver on the part of these executives. this is an example of insider trading. the executives were "banking" on the stock price rising sharply when the purchase announcement was made public.

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Business

Alyssa Hansen

11 October, 23:27

About 10 years ago, there were several bank mergers. shortly after big bucks bank bid on the bank of plenty, a story hit the local newspapers about the investigation into the purchase of several thousand shares of stock of the bank of plenty by three of its top executives, just prior to the announcement that big bucks bank planned to buy bank of plenty. upon close examination by the sec (securities and exchange commission) it was determined that the stock purchases were an illegal maneuver on the part of these executives. this is an example of insider trading. the executives were "banking" on the stock price rising sharply when the purchase announcement was made public.

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Darren Hood · Answer 1

It is true that the executives were "banking" on the stock price rising sharply when the purchase announcement was made public and it is an example of insider trading. It is taking an advantage of the situation of having the access of classified information with the executives and itâ€™s not a legal thing to do.