Fact Pattern 30-2 ​Eddie, an Accountant for Fresh Dairy, Inc., Learns of Undisclosed

question 2

Multiple Choice

Fact Pattern 30-2
​Eddie, an accountant for Fresh Dairy, Inc., learns of undisclosed company plans to market a new smooth-tasting, fat-free butter. Eddie buys 10,000 shares of Fresh Dairy stock. He reveals the company plans to Giselle, who buys 5,000 shares. Giselle tells Hong, who tells Irwin, each of whom buy 1,000 shares. They know that Giselle got her information from Eddie. When Fresh Dairy publicly announces its new product, Eddie, Giselle, Hong, and Irwin sell their stock for a profit.
-Refer to Fact Pattern 30-2. Under the Securities Exchange Act of 1934, Giselle is most likely

• A) ​liable for insider trading.
• B) ​not liable because Giselle did not prevent others from profiting.
• C) ​not liable because Giselle did not solicit information from Eddie.
• D) ​not liable because Giselle does not work for Fresh Dairy.

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Definitions:

Healthy-Looking Men

Men who appear physically fit, robust, and free from visible signs of disease or illness.

Mature

Fully developed physically or mentally, exemplifying adult behavior and self-control.

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The process by which an individual evaluates and interprets an event or situation, influencing their emotional response.

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The physiological state of being awoken or activated, often referencing the body's response to stimuli such as excitement, exercise, or sexual interest.