Dhani,an Accountant for Eureka,Inc

question 7

Multiple Choice

Dhani,an accountant for Eureka,Inc.,learns of undisclosed com-pany plan-s to market a new laptop.Dhani buys 1,000 shares of Eureka stock.He re-veals the company plans to Fay,who buys 500 shares.Fay tells Geoff,who tells Hu.Both Geoff and Hu buy 100 shares.They know that Fay got her informa-tion from Dhani.When Eureka publicly an-nounces its new laptop,Dhani,Fay,Geoff,and Hu sell their stock for a profit.
-Refer to Fact Pattern 26-3.Under the Securities Ex-change Act of 1934,Geoff is most likely

• A)liable for insider trading.
• B)not liable because Geoff did not prevent others from profiting.
• C)not liable because Geoff did not solicit information from Dhani.
• D)not liable because Geoff does not work for Eureka.

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Definitions:

Geographical Era

A period in history defined by significant geographic exploration, changes, or the prevailing geographical understanding of the time.

Raw Materials

Natural resources or substances used in the primary production or manufacturing of goods.

Post-Fordism

An economic and social system that emerged in the late 20th century, characterized by more flexible production methods, workforce strategies, and a shift from mass production to customized goods.

Diffusion Of Capitalism

Refers to the spread of capitalist structures and market-oriented economic systems across different countries and regions over time.