Rolf Called Tim to Discuss an as Yet Unannounced Corporate

question 57

True/False

Rolf called Tim to discuss an as yet unannounced corporate takeover.Following Rolf's call,Tim purchased securities of both corporations on the basis of relevant material information he received.The securities are held in a joint trading account co owned by Tim and Rolf.In these circumstances,Rolf is a tippee,Tim is an insider,and both Rolf and Tim are guilty of insider trading.

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Definitions:

Domestic Corporation

A corporation located in the state in which it is incorporated.

Incorporated

A legal status indicating that a company has been registered under corporate laws and is recognized as a distinct legal entity separate from its owners.

Principal Place Of Business

The primary location where a business's executive offices and operations are conducted.

Articles Of Incorporation

The primary legal document used to officially form a corporation, outlining basic details like the company's name, structure, and purpose.