Find all School-related info fast with the new School-Specific MBA Forum

It is currently 25 May 2016, 22:02
GMAT Club Tests

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Corporate officers and directors commonly buy and sell, for

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

1 KUDOS received
Manager
Manager
User avatar
Joined: 31 Aug 2011
Posts: 215
Followers: 5

Kudos [?]: 129 [1] , given: 53

Corporate officers and directors commonly buy and sell, for [#permalink]

Show Tags

New post 15 Aug 2012, 00:19
1
This post received
KUDOS
3
This post was
BOOKMARKED
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

70% (02:27) correct 30% (01:58) wrong based on 319 sessions

HideShow timer Statistics

Corporate officers and directors commonly buy and sell, for their own portfolios, stock in their own corporations. Generally, when the ratio of such inside sales to inside purchases falls below 2 to 1 for a given stock, a rise in stock prices is imminent. In recent days, while the price of MEGA Corporation stock has been falling, the corporation’s officers and directors have bought up to nine times as much of it as they have sold.
The facts above best support which of the following predictions?
(A) The imbalance between inside purchases and inside sales of MEGA stock will grow even further.
(B) Inside purchases of MEGA stock are about to cease abruptly.
(C) The price of MEGA stock will soon begin to go up.
(D) The price of MEGA stock will continue to drop, but less rapidly.
(E) The majority of MEGA stock will soon be owned by MEGA’s own officers and directors.
[Reveal] Spoiler: OA

_________________

If you found my contribution helpful, please click the +1 Kudos button on the left, I kinda need some =)

Director
Director
User avatar
Status: Final Countdown
Joined: 17 Mar 2010
Posts: 563
Location: India
GPA: 3.82
WE: Account Management (Retail Banking)
Followers: 16

Kudos [?]: 230 [0], given: 75

Re: Corporate officers and directors commonly buy and sell [#permalink]

Show Tags

New post 15 Aug 2012, 03:55
Corporate officers and directors commonly buy and sell, for their own portfolios, stock in their own corporations. Generally, when the ratio of such inside sales to inside purchases falls below 2 to 1 for a given stock, a rise in stock prices is imminent. In recent days, while the price of MEGA Corporation stock has been falling, the corporation’s officers and directors have bought up to nine times as much of it as they have sold.

Inside trading (sell and purchase) will bring the ratio between 2 to 1 hence the stock rate to improve/grow;nine times purchase will enhance the price of stocks

The facts above best support which of the following predictions?
(A) The imbalance between inside purchases and inside sales of MEGA stock will grow even further.
No,it is mentioned that the sell -purchase will rise the stock prices-incorrect
(B) Inside purchases of MEGA stock are about to cease abruptly.
its is not mentioned anywhere-incorrect
(C) The price of MEGA stock will soon begin to go up.correct
(D) The price of MEGA stock will continue to drop, but less rapidly.incorrect
(E) The majority of MEGA stock will soon be owned by MEGA’s own officers and directors.
out of scope, no where mentioned that the officers/directors will own the majority of shares-incorrect
_________________

" Make more efforts "
Press Kudos if you liked my post

Expert Post
Moderator
Moderator
User avatar
Joined: 01 Sep 2010
Posts: 2878
Followers: 653

Kudos [?]: 5181 [0], given: 883

Re: Corporate officers and directors commonly buy and sell [#permalink]

Show Tags

New post 15 Aug 2012, 18:46
Expert's post
Intern
Intern
avatar
Joined: 06 Jul 2012
Posts: 43
Followers: 0

Kudos [?]: 14 [0], given: 36

Re: Corporate officers and directors commonly buy and sell [#permalink]

Show Tags

New post 15 Aug 2012, 23:20
C is the answer. Very easy and direct....
_________________

If you think you are lost, you are.

Manager
Manager
User avatar
Joined: 08 Nov 2014
Posts: 94
Location: India
GPA: 3
WE: Engineering (Manufacturing)
Followers: 0

Kudos [?]: 13 [0], given: 90

GMAT ToolKit User
Corporate officers and directors commonly buy and sell, for [#permalink]

Show Tags

New post 25 Mar 2015, 10:35
1
This post was
BOOKMARKED
Stock goes up when sales/purchase < 2.

Sales/Purchase = 1/9

Henceforth , Stocks will see increasing trend in future.

PUNEETSCHDV wrote:
Corporate officers and directors commonly buy and sell, for their own portfolios, stock in their own corporations. Generally, when the ratio of such inside sales to inside purchases falls below 2 to 1 for a given stock, a rise in stock prices is imminent. In recent days, while the price of MEGA Corporation stock has been falling, the corporation’s officers and directors have bought up to nine times as much of it as they have sold.
The facts above best support which of the following predictions?
(A) The imbalance between inside purchases and inside sales of MEGA stock will grow even further.
(B) Inside purchases of MEGA stock are about to cease abruptly.
(C) The price of MEGA stock will soon begin to go up.
(D) The price of MEGA stock will continue to drop, but less rapidly.
(E) The majority of MEGA stock will soon be owned by MEGA’s own officers and directors.

_________________

"Arise, Awake and Stop not till the goal is reached"

1 KUDOS received
Intern
Intern
avatar
Joined: 17 Sep 2015
Posts: 32
Location: United Kingdom
GMAT 1: 660 Q45 V35
GPA: 3.1
Followers: 0

Kudos [?]: 4 [1] , given: 14

CAT Tests
Re: Corporate officers and directors commonly buy and sell, for [#permalink]

Show Tags

New post 24 Apr 2016, 11:37
1
This post received
KUDOS
Well for the inside selling question we cant pre think in a mathematical way.

Lets say the Price goes up when the ratio of Sales to Purchase is less than 2:1

S/P < 2/1 the price goes up

Now the situations says :- P=9S

Substituting in the main statement :- S/9S = 1/9 i.e.<2/1 hence the price is bound to go up.

I hope my prethinking is correct.

If it helps, dont be shy to show some love...
Re: Corporate officers and directors commonly buy and sell, for   [#permalink] 24 Apr 2016, 11:37
    Similar topics Author Replies Last post
Similar
Topics:
Experts publish their posts in the topic Corporate officers and directors commonly buy and sell, for carcass 4 11 Feb 2013, 12:46
12 Corporate Officer: Last year was an unusually poor one for noboru 30 23 Aug 2009, 11:13
Corporate officers and directors commonly buy and sell, for tarek99 7 27 Dec 2007, 04:28
Corporate Officer: Last year was an unusually poor one for AugiTh 7 19 Jul 2007, 12:52
Corporate officers and directors commonly buy and sell, for foolz_rulz 8 25 Jun 2006, 07:14
Display posts from previous: Sort by

Corporate officers and directors commonly buy and sell, for

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.