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

question 16

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,Geoff is most likely​

• A)liable for insider trading.
• B)not liable because Geoff is only a tippee,not a tipper.
• C)not liable because Geoff is too far down the chain of disclosure.
• D)not liable because Geoff traded on the basis of a material fact.

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Definitions:

Growth Curve

A graphical representation that shows the growth of a species or population over time, often displaying phases such as lag, exponential, stationary, and death.

S-Shaped

A shape that resembles the letter "S", often used to describe curves or bends in objects or structures.

J-Shaped

Describing a curve or graph that looks like the letter "J," often used to illustrate specific growth patterns or statistical trends.

Carrying Capacity

The maximum population size of a species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.