Fact Pattern 19-1

question 56

Multiple Choice

Fact Pattern 19-1
Sid, a director of Tech Software Company, learns that a Tech engineer has developed a new, exciting video game. Sid buys Tech stock and tells his friend Uri, who also buys Tech stock. When the new game is released three weeks later, Sid and Uri sell their stock for a big profit.
-Refer to Fact Pattern 19-1. Regarding Sid's profits on the purchase and sale of Tech stock, under Section 16(b) of the Securities Exchange Act of 1934 Tech may recapture

• A) all of Sid's profits.
• B) half of Sid's profits.
• C) 10 percent of Sid's profits.
• D) none of Sid's profits.

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Definitions:

Identity Certainty

A state of clear, secure understanding, and confidence in one's own sense of self, values, and beliefs.

Generativity

A sense of productivity and creativity, usually developed during middle adulthood, involving concern for establishing and guiding the next generation.

Five-Factor Personality Model

This model, also known as the "Big Five," describes personality based on five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Openness To Experience

A personality trait characterized by a person's willingness to try new activities, engage in imaginative pursuits, and be open to new ideas and experiences.