In SEC VSwitzer,et Al

question 56

Multiple Choice

In SEC v.Switzer,et al.,Switzer overheard a conversation while in a public place and used information heard during the conversation to for a group to purchase stock in a corporation that subsequently showed a substantial profit.When the SEC brought charges of insider trading against Switzer the court said:

• A) since Switzer was not a direct participant in the conversation, he could not be prosecuted as a tippee.
• B) Switzer was not a tippee because he did not know that the information overheard was material and non-public.
• C) the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his company because he spoke about the company in a public place.
• D) the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his company and was guilty of insider trading because he was telling his wife material and non-public information

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Definitions:

Ineffective Punishment

A form of discipline that fails to decrease the occurrence of a behavior; it may lack consistency, immediacy, or connection to the specific behavior.

Fear

A basic emotion induced by a perceived threat, leading to confrontation with or avoidance of said threat.

Rebellious

describes a person, behavior, or action showing a desire to resist authority, control, or convention.

Target Response

The desired behavior or outcome that a study or campaign aims to elicit from its subjects or audience.