Fact Pattern 37-2

question 43

Multiple Choice

Fact Pattern 37-2
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 37-2. 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:

Lysosomes

Membrane-bound organelles in cells containing enzymes that break down waste materials and cellular debris.

Phagocytosis

A cellular process where a cell engulfs particles, bacteria, or other foreign bodies, enveloping them in a vesicle to be digested.

Lymphocyte Activity

The roles and behaviors of lymphocytes, a type of white blood cell, in the immune system, including recognizing and combating pathogens.

Microorganisms

Tiny living organisms that can only be seen with a microscope, including bacteria, viruses, and fungi, among others.