Insider Trading Self-Quiz
Tommy, the copy shop manager
in BigCo’s office tower, got wind of the fact that the company was
engaged in a big transaction when he photocopied a bunch of material associated
with the deal. Acting on this knowledge, Tommy went out and traded BigCo’s
securities and made a huge profit. Tommy is guilty of committing:
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George has been found guilty
of insider trading through a violation of Rule 10b-5. At his trial, the
judge requires that he pay a civil fine and:
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Saul is a senior officer
at XY Co. and has recently received some good news from the company’s
sales department. The company is just about to close on a major deal that
will net the company huge profits over the next several years. Saul had
been thinking about buying more shares in the firm. While he would like
to reap the benefits of the new contract’s effect on shares, he
is concerned about the insider trading laws. Saul would be best advised
if he:
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An attorney for the SEC is
pursuing an insider trading case against a director of Oops, Inc. She
reads Section 16b of the 1933 Act and feels that might be a good way of
filing her case. If she is right, then the director in question must:
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