The government's strict insider-trading laws require that principals involved in a merger not onlycannot share information about that merger with outside investors, but that they also are not allowed to buy or sell stocks themselves based on their inside knowledge.
  • a)
    that principals involved in a merger not only cannot share information about that merger with outsideinvestors, but that they also are not allowed to
  • b)
    not only that principals involved in a merger not share information about that merger with outsideinvestors, but also that they not
  • c)
    not only that principals involved in a merger not share information about that merger with outsideinvestors, but that they also cannot
  • d)
    that principals involved in a merger not only not share information about that merger with outsideinvestors, but also that they are not allowed to
  • e)
    not only that principals cannot share information about that merger with outside investors, but theyalso cannot
Correct answer is option 'B'. Can you explain this answer?
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GMAT Question

By Chandna Arora · Apr 13, 2020 ·GMAT
2 Answers
Preitee Ranjan Pradhan answered 3 weeks ago
2 rules here
subjunctive , not only x but/but also y
and THAT AND/OR/BUT THAT parallelism
answer is B

SYED MIR MUBASHIR ALI answered Apr 16, 2020
The original sentence contains the incomplete idiom "not only...but." The complete idiom is "not only...but also" (where "also" is not separated from "but"). Moreover, the combination of "require that" and "cannot" is incorrect. The construction "require that" necessitates the subjunctive mood for any verbs in the following clause.
(A) This choice is incorrect as it repeats the original sentence.
(B) CORRECT. The phrase "not only that principals . . . not share . . . but also that they not buy or sell" is an
idiomatic and parallel structure ("not only that x not y but also that x not z"). Additionally, the verb phrase "not share" is correctly in the subjunctive mood.
(C) The verb phrase "cannot buy or sell" is in the indicative mood, not in the subjunctive mood (which is necessary for verbs following the construction "require that"). Additionally, the words "but" and "also" are separated by the words "that they", unnecessarily breaking the idiom "not only . . . but also."
(D) The verb phrase "are not allowed" is in the indicative mood, not in the subjunctive mood (which is necessary for verbs following the construction "require that").
(E) The verb phrases "cannot share" and "cannot buy or sell" are in the indicative mood, not in the subjunctive mood (which is necessary for verbs following the construction "require that"). Additionally, the words "but" and "also" are separated by the word "they", unnecessarily breaking the idiom "not only . . . but also."

This discussion on The governments strict insider-trading laws require that principals involved in a merger not onlycannot share information about that merger with outside investors, but that they also are not allowedto buy or sell stocks themselves based on their inside knowledge.a)that principals involved in a merger not only cannot share information about that merger with outsideinvestors, but that they also are not allowed tob)not only that principals involved in a merger not share information about that merger with outsideinvestors, but also that they notc)not only that principals involved in a merger not share information about that merger with outsideinvestors, but that they also cannotd)that principals involved in a merger not only not share information about that merger with outsideinvestors, but also that they are not allowed toe)not only that principals cannot share information about that merger with outside investors, but theyalso cannotCorrect answer is option 'B'. Can you explain this answer? is done on EduRev Study Group by GMAT Students. The Questions and Answers of The governments strict insider-trading laws require that principals involved in a merger not onlycannot share information about that merger with outside investors, but that they also are not allowedto buy or sell stocks themselves based on their inside knowledge.a)that principals involved in a merger not only cannot share information about that merger with outsideinvestors, but that they also are not allowed tob)not only that principals involved in a merger not share information about that merger with outsideinvestors, but also that they notc)not only that principals involved in a merger not share information about that merger with outsideinvestors, but that they also cannotd)that principals involved in a merger not only not share information about that merger with outsideinvestors, but also that they are not allowed toe)not only that principals cannot share information about that merger with outside investors, but theyalso cannotCorrect answer is option 'B'. Can you explain this answer? are solved by group of students and teacher of GMAT, which is also the largest student community of GMAT. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for GMAT on EduRev and even discuss your questions like The governments strict insider-trading laws require that principals involved in a merger not onlycannot share information about that merger with outside investors, but that they also are not allowedto buy or sell stocks themselves based on their inside knowledge.a)that principals involved in a merger not only cannot share information about that merger with outsideinvestors, but that they also are not allowed tob)not only that principals involved in a merger not share information about that merger with outsideinvestors, but also that they notc)not only that principals involved in a merger not share information about that merger with outsideinvestors, but that they also cannotd)that principals involved in a merger not only not share information about that merger with outsideinvestors, but also that they are not allowed toe)not only that principals cannot share information about that merger with outside investors, but theyalso cannotCorrect answer is option 'B'. Can you explain this answer? over here on EduRev! Apart from being the largest GMAT community, EduRev has the largest solved Question bank for GMAT.
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