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Corporate officers and directors commonly buy and sell, for

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Manager
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Corporate officers and directors commonly buy and sell, for [#permalink] New post 25 Jun 2006, 06:14
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A
B
C
D
E

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0% (00:00) correct 0% (00:00) wrong based on 0 sessions
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.

Please post reasons too
Senior Manager
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 [#permalink] New post 25 Jun 2006, 06:18
Not sure but will go for D.
Director
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 [#permalink] New post 25 Jun 2006, 06:21
Straight C
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Manager
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 [#permalink] New post 25 Jun 2006, 06:22
i got C too

want to compare the reason too
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 [#permalink] New post 27 Jun 2006, 00:37
Got C too,

No other option makes sense.

A - This is pure speculation we don't know whether the executives will continue to buy more stocks
B - Again pure speculation. Nothing is mentioned in the passage about sale being stopped.
D - Contradictory to what is stated in the passage
E - Speculation
Director
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 [#permalink] New post 10 Jul 2006, 08:15
C. can we have the OA for this please.
Manager
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 [#permalink] New post 10 Jul 2006, 09:21
Yup. I like C.

We can only infer C or D.

D says the opposite of whats stated in the passage.
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 [#permalink] New post 10 Jul 2006, 09:48
Answer: (C) The price of MEGA stock will soon begin to go up.

If anyone has read about insiders dumping stock, this would seem unlikely, but hey... this is GMAT not reality!! :P
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 [#permalink] New post 10 Jul 2006, 21:48
Straight C, even if u dont understand the concept of ratios only the option C has been discussed in the argument
  [#permalink] 10 Jul 2006, 21:48
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Corporate officers and directors commonly buy and sell, for

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