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Derek,Alex and Jorge Each Own Stock in Roundball,Inc

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Derek,Alex and Jorge each own stock in Roundball,Inc.Derek is the chief executive officer,Alex is a fifteen-percent shareholder,and Jorge owns one hundred shares,which is less than one percent of the company's outstanding stock.During the first quarter of 2008,each of the three have bought and sold various numbers of shares in Roundball,and each has realized a significant profit.None of the three have used insider information when making any of their transactions.Has a violation of the 1934 Securities Exchange Act occurred,and if so,by whom?


Definitions:

Bid Price

The highest price that a buyer is willing to pay for a security.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios), often for the purpose of planning through uncertainty.

Sensitivity Analysis

Analyzes how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Simulation Analysis

Involves the use of mathematical models to predict the outcome of various financial strategies under different conditions.

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