Refer to Fact Pattern 24-3

question 61

Multiple Choice

Refer to Fact Pattern 24-3.Under the Securities Exchange Act of 1934,Fay is most likely

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

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Definitions:

Market Price

The present cost at which a product or service can be purchased or traded within a market.

Interest Rates

The cost of borrowing money or the return earned from lending money, expressed as a percentage of the loan amount charged or earned over a specific period.

General Direction

The overall strategic approach or guidance for the operations and decisions of an organization or project.

Term to Maturity

The duration of time left until the expiration or due date of a financial instrument, such as a bond, at which point the principal is supposed to be paid back to investors.