David Is a Director on a Board of a Corporation

question 13

Multiple Choice

David is a director on a board of a corporation that is covered by the federal securities laws.He buys 1,000 shares of stock in the corporation based upon information he has received as a director.The purchase is:

• A) valid provided no fraudulent statements were made to the person from whom he purchased the shares.
• B) invalid.
• C) voidable regardless of whether a public announcement was made.
• D) valid provided the purchase occurred after a public announcement of the information.

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Definitions:

Autism Spectrum Disorder

A neurodevelopmental condition characterized by challenges with social skills, repetitive behaviors, speech, and nonverbal communication.

Resperidone

An antipsychotic medication used to treat schizophrenia and certain problems caused by bipolar disorder.

Methylphenidate

Methylphenidate is a stimulant medication commonly used to treat Attention Deficit Hyperactivity Disorder (ADHD) and certain sleep disorders like narcolepsy.

Learning Disorders

Learning Disorders are neurodevelopmental disorders that affect the brain's ability to receive, process, store, respond to, and communicate information, impacting academic learning.