Which of the Following Was the Result on Appeal in Securities

question 49

Multiple Choice

Which of the following was the result on appeal in Securities and Exchange Commission v.Texas Gulf Sulphur Co,the case in the textbook in which it was alleged that corporate employees possessed inside information involving the likelihood of a major mineral find precluding them from trading in their company's stock?

• A)That the defendants could not be held liable because they were not executives of the company.
• B)That the defendants could not be held liable because company policy precluded them from disclosing the information at issue to the public.
• C)That the defendants could not be held liable because a significant mineral discovery was not sufficiently certain to require disclosure to the public.
• D)That the defendants could be held liable because of their status as insiders,regardless of whether the information would be deemed material.
• E)That the defendants could be held liable because they failed to reveal material information to the public.

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Definitions:

Primary Reinforcer

A primary reinforcer is a stimulus that satisfies basic survival needs without prior learning; examples include food, water, and shelter.

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.

Instinctive

Related to or denoting behavior that is innate and automatic, not learned from experience.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and/or genetics.