Fact Pattern 37-3

question 13

Multiple Choice

Fact Pattern 37-3
Dhani, an accountant for Eureka, Inc., learns of undisclosed com?pany plan?s to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He re?veals the company plans to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100 shares. They know that Fay got her informa?tion from Dhani. When Eureka publicly an?nounces its new laptop, Dhani, Fay, Geoff, and Hu sell their stock for a profit.
-Refer to Fact Pattern 37-3. Under the Securities Ex?change Act of 1934, Geoff is most likely

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

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Definitions:

Actual Negotiations

are the real, factual discussions and bargaining processes between parties with the intention of reaching an agreement.

Managing Agreement

The process of overseeing and implementing the terms of an agreement to ensure all parties fulfill their obligations and objectives are met.

One-On-One Negotiations

Negotiation processes that occur between two individuals.

Surveillance

The close observation, especially of a suspected spy or criminal.