Rico Does Not Work for Street Bikes Company, but Wrongfully

question 8

Multiple Choice

Rico does not work for Street Bikes Company, but wrongfully obtains inside information concerning the firm. Based on the information, Rico buys and sells Street Bikes stock for personal gain. The Securities and Exchange Commission prosecutes Rico, arguing that he is liable because he stole information rightfully belonging to another. This argument is​

• A) ​the blue-sky theory.
• B) ​the misappropriation theory.
• C) ​the free-writing prospectus theory.
• D) ​the tipper/tippee theory.

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Definitions:

Academic Achievement

The degree to which an educational goal, whether immediate or future, has been achieved by a student, teacher, or academic institution.

Analytic Intelligence

A facet of intelligence involved in the ability to analyze, evaluate, judge, compare, and contrast information.

Creative Intelligence

The ability to produce new ideas, solutions, and ways to approach problems that are unique and effective.

Applied Intelligence

The use of cognitive skills and knowledge in practical situations to solve problems effectively.