Stock analyst

[GmatGreen]

An influential stock analyst recommends the purchase of three infrequently traded stocks in each of his weekly magazine columns. Unusually large amounts of these stocks are often purchased one day before the magazine appears on the newsstands. This pattern has recurred over a five-year period.

Suppose that the information presented above is accurate. Each of the following statements, if true, could help to explain why the unusually large purchases occurred EXCEPT:

(A) Workers at the company that prints the magazine have used their advance knowledge of the analyst's column to guide their own stock purchases.

(B) Workers at the company that prints the magazine often sell advance copies of the magazine to stockbrokers.

(C) One hundred copies of each issue of the magazine are circulated in the publishing company's office a day before the issue appears on newsstands.

(D) The analyst refuses to submit his column for editorial review before it is printed.

(E) Twenty people in the publishing company have access to the analyst's column before it is printed

[Patrick_GMATFix]

Hope this helps. My signature below has more info.
-Patrick

[Abhishek009]

An influential stock analyst recommends the purchase of three infrequently traded stocks in each of his weekly magazine columns. Unusually large amounts of these stocks are often purchased one day before the magazine appears on the newsstands. This pattern has recurred over a five-year period.

1. An analyst recommends purchase of an infrequently traded stock in a magazine.

2. Just day before hitting news stands prices of these stocks shoot up.

3. This phenomenon has been occurring for the last 5 years.



Analyst -------- > Editor -------> Distributors ---------> News stands ====> Readers...


We can say that information leak is occurring in the highlighted part for the past 5 years.

Suppose that the information presented above is accurate. Each of the following statements, if true, could help to explain why the unusually large purchases occurred EXCEPT:


(A) Workers at the company that prints the magazine have used their advance knowledge of the analyst's column to guide their own stock purchases.

Might be possible...

(B) Workers at the company that prints the magazine often sell advance copies of the magazine to stockbrokers.

Out of scope..

(C) One hundred copies of each issue of the magazine are circulated in the publishing company's office a day before the issue appears on news stands.

100 Copies are distributed , may be it was used by the employees to inform others as well and leading to a rise in price of the stocks - Quite Possible..

(D) The analyst refuses to submit his column for editorial review before it is printed.

Had the analyst adopted such strategy then the same phenomenon would not have occurred in the last 5 years..

Can be a right answer choice..

(E) Twenty people in the publishing company have access to the analyst's column before it is printed

How much time does it lead to leaking the secret for some money ? This is possible...


IMO (D) , what's the OA ?

[alanforde800Maximus]

Bumping for experts review.