Fact Pattern 19-2

question 31

Multiple Choice

Fact Pattern 19-2
Dhani, an accountant for Eureka, Inc., learns of undisclosed company plans to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100 shares. They know that Fay got her information from Dhani. When Eureka publicly announces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.
-Refer to Fact Pattern 19-2. Under the Securities Exchange Act of 1934, Geoff is most likely

• A) liable for insider trading.
• B) not liable because Geoff did not prevent others from profiting.
• C) not liable because Geoff did not solicit information from Dhani.
• D) not liable because Geoff does not work for Eureka.

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Definitions:

Committed

Refers to being dedicated or bound to a cause, activity, or relationship.

Rape Fantasies

Imaginary scenarios that involve the arousal from the thought of non-consensual sex, sometimes held by both men and women, and deeply rooted in complex psychological factors.

Impossible

Something that cannot be done, achieved, or accomplished within the known limits of reality or possibility.

Pedophile Priests

Refers to members of the clergy who have committed sexual abuse against minors, a scandal that has notably impacted various religious institutions.