Chris, a Coder for Drones Inc

question 48

Multiple Choice

Chris, a coder for Drones Inc., learns of undisclosed company plans to market a new, smart drone. Chris buys 10,000 shares of the firm's stock. If Chris is liable under the Securities Exchange Act of 1934, it will be because the information on which he based his purchase of the stock was

• A)a forward-looking forecast.
• B)not material.
• C)not yet public.
• D)not yet true.

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Definitions:

Values Orientation

The emphasis on core principles and morals that guide behavior within an organization or society, impacting decision-making and priorities.

Compliance Orientation

Focuses on adherence to rules and regulations, often within the context of business or organizational operations, to ensure lawful and ethical conduct.

Ethics Issues

Problems or situations that require individuals or organizations to choose between actions that are evaluated as right or wrong.

FSGO

The Federal Sentencing Guidelines for Organizations, a framework that incentivizes organizations in the United States to install and maintain ethics and compliance programs to mitigate punishment for offenses.