Cam, an Accountant for Discount Inc

question 33

Multiple Choice

Cam, an accountant for Discount Inc., learns that the company's soon-to-be-announced quarterly sales figures exceed analysts' expectations. Cam tells Ed, who tells Frye, who buys 100 shares of the company's stock. Frye knows that Ed got the information from Cam. When Discount publicly announces the figures, Frye sells the stock for a profit. Under the Securities Exchange Act of 1934, Ed is most likely

• A)liable for insider trading.
• B)not liable because Ed did not prevent others from profiting.
• C)not liable because Ed did not misappropriate any information.
• D)not liable because Ed does not work for Discount.

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Definitions:

Price of Oil

The cost per barrel of crude oil as determined by global markets, influenced by factors like supply, demand, geopolitical events, and market speculation.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy.

Bureau of Labor Statistics

A federal agency in the United States dedicated to gathering and examining data on job market trends, conditions of employment, and variations in pricing.