Fact Pattern 7-2 Ben, an Accountant for AirLift, Inc., a Ride Service, Learns

question 41

Multiple Choice

Fact Pattern 7-2
Ben, an accountant for AirLift, Inc., a ride service, learns of undisclosed company plans to distribute a new app. Ben buys 10,000 shares of AirLift stock. He reveals the company plans to Carly, who buys 5,000 shares. Carly tells Don, who tells Erwin, and each buys 1,000 shares. They know that Carly got her information from Ben. When AirLift publicly announces its new app, Ben, Carly, Don, and Erwin sell their stock for a profit.
-Refer to Fact Pattern 7-2. Under the Securities Exchange Act of 1934, Carly is most likely​

• A) ​liable for insider trading.
• B) ​not liable because Carly did not prevent others from profiting.
• C) ​not liable because Carly did not solicit information from Ben.
• D) ​not liable because Carly does not work for AirLift.

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Definitions:

Procedural Memories

Memories of the processes involved in performing tasks that often do not require conscious thought.

Emotional Memories

Memories strongly associated with emotional experiences, which are often more vivid and easily recalled than memories lacking emotional content.

Priming

is a psychological phenomenon where exposure to one stimulus influences the response to a subsequent stimulus, without conscious guidance or intention.

Explicit Memory

Explicit memory involves conscious recollection of previous experiences or information, such as facts and events.