n NISM Certifications
XV NISM Series XV
Medium

Correct statement about Insider Trading:

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Grave concern if insiders sell shares

  2. Insiders may sell for various reasons; analyst should understand

    Correct answer

  3. C

    Illegal for insiders to sell

  4. D

    Analyst should ignore insider trading

Why this is the answer

Insiders can sell legally if not in possession of unpublished price-sensitive information (UPSI). Analysts should assess reasons for insider sales.

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