Who qualifies as an insider of a corporation?

• A. Only the CEO of the company
• B. Directors and senior officers, and those with access to non-public information
• C. Only shareholders owning less than 10% of voting shares
• D. Any employee of the corporation

Answer: (B)

The correct choice identifies insiders as individuals who hold positions such as directors and senior officers within a corporation, as well as those who have access to non-public information about the company. This definition is critical because insiders are privy to sensitive information that can significantly influence the company's stock price and market behavior, which is why they are subject to specific regulations and restrictions regarding trading that information.

Directors and senior officers are considered insiders due to their roles and the level of access they have to confidential information that can inform their decisions and strategies for the company. Additionally, those with access to non-public information, regardless of their official title, are also treated as insiders because this information might grant them an unfair advantage in trading the company’s stock.

Other choices mentioned do not encompass the full scope of what defines an insider. For instance, limiting it solely to the CEO would ignore many other potential insiders who may have equally impactful roles. Similarly, suggesting that only shareholders with less than 10% are insiders disregards the broader category of individuals with access to non-public information. Lastly, claiming that any employee qualifies as an insider is too broad, as not all employees would have access to crucial, market-sensitive information. Thus, the correct definition of an insider captures those who have