Fact Pattern 42-3​ Dan, an Accountant for Eureka! Inc. Learns of Undisclosed Company

question 40

Multiple Choice

Fact Pattern 42-3​
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 42-3. 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.

Apply consumer choice theory to analyze real-world economic situations and experiments.

Understand the concept of consumer optimum and how it is determined by the intersection of budget constraints and indifference curves.

Calculate the optimum consumption bundle given a consumer's income and prices of goods.

Analyze the effects of changes in income and prices on consumer behavior and choices.

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Definitions:

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often justifying government intervention.

Isomorphism

A concept in sociology that refers to the process by which organizations in the same sector or context become increasingly similar to each other in structure and function.

Hybrid System

A combination of different technologies, methodologies, or systems that integrate to function together, often bringing together the best features of each.

Closed

This term could refer to an entity, system, or status that is not open for operation, participation, or access by the public or specific groups.