Fact Pattern 28-3 Dan,an Accountant for Eureka! Inc.learns of Undisclosed Company Plans to Company

question 20

Multiple Choice

Fact Pattern 28-3
Dan,an accountant for Eureka! Inc.learns of undisclosed company plans to market a new laptop.Dan buys 1,000 shares of the firm's stock.He reveals the company plans to Fay,who tells Greg.Both Fay and Greg buy 100 shares.Greg knows that Fay got her information from Dan.When Eureka! publicly announces its new laptop,Dan,Fay,and Greg sell their stock for a profit.
-Refer to Fact Pattern 28-3.Under the Securities Exchange Act of 1934,Fay is most likely​

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

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Definitions:

Acidic

Pertaining to substances that have a pH less than 7, and are capable of donating a proton or hydrogen ion in a chemical reaction.

Strong Acids

Acids that completely ionize in solution, yielding a high concentration of hydrogen ions (H+) and demonstrating a strong ability to donate protons.

Strong Acid

An acid that completely dissociates in water, releasing a high concentration of hydrogen ions and exhibiting a low pH.

Formic Acid

A colorless, pungent liquid with the formula HCOOH, used in various chemical manufacturing processes and as a preservative.