ABC Company, a Designer of Computer Software, Had a Number

question 42

Essay

ABC Company, a designer of computer software, had a number of new products ready to launch. Sean, a seller of office supplies to ABC Company, was talking with Yumi, the president of the company, regarding a product order. Yumi was called away from her office for a few minutes, and Sean, who liked to be curious, took the opportunity to go through the papers on her desk. Sean discovered a description of the new software products. He immediately bought lots of ABC Company stock and made a significant profit following the public announcement of the new software and the resulting increase in the price of ABC Company stock. Is there any theory on which Sean could be held liable for a securities violation, and, if so, what? Describe any such theory.

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Definitions:

Cause Advocacy

The act of aggressively supporting a particular cause or policy, especially to bring about social or political change.

Case Advocacy

The direct support or representation of an individual or group's case or cause, typically in a legal or social service context.

Agency Policies

The rules and guidelines established by organizations or government bodies to govern operations and procedures within those entities.

Legislative Bodies

Institutions or groups of individuals vested with the power to make, amend, and repeal laws.