Chiarella Worked at a Company That Printed Financial Documents

question 183

Multiple Choice

Chiarella worked at a company that printed financial documents. In one documents, he read confidential information that allowed him to buy stock and make a nice profit because of his knowledge. When sued by the SEC for insider trading, the Supreme Court found Chiarella:

• A) guilty of violating Rule 10(b)-5 because he failed in his duty to disclose relevant information
• B) guilty of violating Rule 10(b)-5 because he traded in securities based on inside information
• C) guilty of violating Section 16(b) because he engaged in short-swing trading for profit
• D) not guilty of insider trading because he had no fiduciary duty not to use the information
• E) none of the other choices

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Definitions:

Chromosomes

Structures within cells that contain genetic information (DNA) necessary for the replication and function of organisms.

Autosomes

Chromosomes that are not directly involved in determining the sex of an organism, making up the majority of the organism's genome.

Motor Skill

The ability to perform movements with precision and coordination, often acquired or improved through practice and learning.

Motor Milestones

Developmental stages marking significant physical abilities in infants and children, like crawling, walking, and grasping.