Why is knowing whether directors have been purchasing shares of a corporation a fundamental right belonging to the shareholders of a corporation?
A) It permits shareholders to maintain the optimum proportionate share of ownership.
B) It is the simplest and least costly method of earning capital gains.
C) It is the simplest and least costly method of soliciting proxies.
D) It permits shareholders to determine the use of confidential information for personal profit.

Question

Quizplus · Accepted Answer

Knowing whether directors have been purchasing shares allows shareholders to assess if directors are using confidential information for personal gain, which is crucial for transparency and trust in corporate governance.

Why Is Knowing Whether Directors Have Been Purchasing Shares of a Corporation