Ross, a Sales Executive with Steel Mill Inc

question 58

Multiple Choice

Ross, a sales executive with Steel Mill Inc., learns of undisclosed company plans to produce a new type of steel. Ross tells Tim, who tells Uri, who buys 100 shares of Steel Mill stock. Uri knows that Tim got the information from Ross. When the firm publicly announces its new product, Uri sells the stock for a profit. Under the Securities Exchange Act of 1934, Uri is most likely

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

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Definitions:

Personality Theory

A framework that attempts to explain the patterns of thoughts, feelings, and behaviors that make up an individual's personality.

White Men

A demographic group identified by race (white) and gender (male); often discussed in contexts of privilege, power dynamics, and social identity.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Projective Test

A psychological assessment tool that uses ambiguous stimuli to elicit responses that reveal aspects of an individual’s personality.