Fact Pattern 31-2

question 53

Multiple Choice

Fact Pattern 31-2
Sid, a director of Tech Software Company, learns that a Tech engineer has developed a new, exciting video game. Sid buys Tech stock and tells his friend Uri, who also buys Tech stock. When the new game is released three weeks later, Sid and Uri sell their stock for a big profit.
-Refer to Fact Pattern 31-2. Under SEC Rule l0b-5, Sid would not be liable if he had waited to buy Tech stock until

• A) after Sid told Uri of the new game.
• B) after Uri bought Tech stock.
• C) after the public release of the game.
• D) just before the game was released.

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Definitions:

Ethics Audits

A systematic evaluation of an organization's ethics policies and procedures to ensure they are being followed and to identify areas needing improvement.

Standards

Established accepted criteria or specifications for products, services, processes, or behavior, used as a basis for comparison or judgment.

Actual Behavior

The real actions or conduct displayed by individuals, as opposed to their stated intentions or beliefs.