The other members agree with Brandon’s logic and vote to sell BoxCorps

QUESTION

The other members agree with Brandon’s logic and vote to sell BoxCorps and buy Excelsior. All of the following, EXCEPT which one, could be a potential result?

A) Excelsior fails as a business, and the club loses all of the money it invested in it.
B) Excelsior is bought out by a bigger medical firm, and the club winds up owning stock in that company.
C) Excelsior’s drugs turn out to be big successes, and the club members become rich.
D) Brandon and the club members are indicted for insider trading.
E) BoxCorps stock turns out to be undervalued, and the club loses the chance to profit when its price advances.

ANSWER

Answer: D
Explanation: D) Brandon is an amateur using publicly available financial information. If he had access to private insider information about either company, he could theoretically be accused of insider trading, but this is not the case. So Choice D is correct. Each of the other results, given the speculative nature of the trade, is quite possible as an outcome.