​Fact Pattern 20-2

question 30

Multiple Choice

​Fact Pattern 20-2
Sid,a director of Tech Software Company,learns that a Tech engineer has developed a new,exciting video game.Sid buys Tech stock and tells his friend Uri,who also buys Tech stock.When the new game is released three weeks later,Sid and Uri sell their stock for a big profit.
-Refer to Fact Pattern 20-2.Under SEC Rule l0b-5,Sid would not be li-able if he had waited to buy Tech stock until​

• A) after Sid told Uri of the new game.
• B)after Uri bought Tech stock.
• C)after the public release of the game.
• D)just before the game was released.

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the effect of one economic variable from the influence of others.

Normative Economics

A branch of economics that deals with value judgments about what the economy should be like, focusing on what ought to be rather than what is.

Post Hoc

Post hoc refers to a logical fallacy where it is assumed that if one event occurs after another, it must have been caused by the first event.

Inductive Reasoning

A method of reasoning in which specific observations or sets of observations are used to make broad generalizations.