Salman Received Information About Stocks from Michael Kara, His Future

question 109

Multiple Choice

Salman received information about stocks from Michael Kara, his future brother-in-law, who received inside information from Michael's brother, Maher Kara, who worked at Citigroup's investment banking group. Salman and Michael made numerous identical trades and earned significant income. Michael confessed to federal investigators. Salman was convicted of insider trading but contended that he was an innocent tippee who did not receive information directly from Maher who provided the tips and that Maher did not know he was receiving the information. The appeals court held that there was:

• A) ​no evidence that Maher knew that either Michael or Salman was using the information, so there was no intent to engage in insider trading.
• B) ​no evidence that Maher knew that Michael was passing information to Salman, so Salman was an innocent tippee.
• C) ​evidence that Maher knew Michael was using the information but no evidence that he knew Salman obtained the information, so Salman was an innocent tippee.
• D) ​evidence that Micheal hid the source of the information, so Salman thought he was lucky or smart.
• E) ​none of the other choices are correct.

Understand the concepts of defensive and nondefensive communication and their impact on interpersonal interactions.

Identify and explain various channels and technologies used in communication, focusing on their appropriateness and etiquette.

Recognize the barriers to effective communication, including language, stereotypes, and professional jargon, and strategies to overcome them.

Explain the role and characteristics of effective written communication in organizational contexts.

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Definitions:

Abstractness

The quality of being abstract; not related to physical or concrete reality but instead involving complex or theoretical concepts.

Stringed Instrument

A musical instrument that produces sound through vibrating strings.

Musical Instrument

A device designed to produce musical sounds by the manipulation of its various parts, often involving keyboard, string, percussion, wind, or electronic means.

Electric Guitar

A stringed musical instrument that uses electromagnetic pickups to convert the vibration of its steel-cored strings into electrical signals, which can then be amplified.